The Agent-Era Engineering Org: Team Shape, Ladders and Reviews When Agents Write Most of the Code

In many teams the agents now write most of the code. This course is about what that does to the organisation around them: what a “task” is when one engineer supervises several agents, how teams form around coordinators and workers, why the reviewer is the real constraint, what happens to juniors, how to hire and evaluate, how to put tokens next to headcount for a CFO, and a 90-day plan to reorganise without breaking production.

8 modules
23 quiz questions
8 flashcard decks
2 worked models
~100 min

Built from primary sources: Anthropic’s R&D Automation Index, xAI’s Team Bots post, Cursor’s Projects and Rollouts announcements, OpenAI’s DevDay recap and misalignment report, METR, DORA 2025, Faros AI, GitClear, Stanford’s Canaries paper and 2026 AI Index, SignalFire, Levels.fyi and Anthropic’s price list. Research current to 13 October 2026.

How to read this course

Numbers that come from a vendor describing its own product are labelled vendor-reported. Numbers from a study carry the study’s population and date, because every one of them has a caveat that matters. The two worked models (modules 3 and 7) state every input and were computed before publishing; change an input and the conclusion may change, which is the point of a model.

Callouts labelled My position are argument, not sourced fact. I run engineering organisations; I am writing for people who do the same.

Course Modules

  1. The new unit of workFoundations
  2. Topologies: coordinators, workers and blast radiusStructure
  3. Agents per engineer and reviewer capacityModel
  4. The junior pipeline and levelingPeople
  5. Hiring loops for the agent eraPeople
  6. Performance management without output proxiesMeasurement
  7. Headcount vs token budgetsModel
  8. A 90-day reorg planPlaybook
1

The new unit of work

From tickets to delegated runs, and why the review bill is the constraint
Learning objectives
  • Define a delegated run and tell it apart from a ticket
  • State what Anthropic’s “26%” figure measures and what it does not
  • Explain why review, not generation, is now the binding constraint
  • Apply Cherny’s blast-radius split to your own backlog

From tickets to delegated runs

For thirty years the unit of engineering work was the ticket. One engineer picked it up, wrote the change, opened a pull request, someone else reviewed it, and it merged. Generation was the slow step. Everything downstream of it, from review to release management, was sized on the assumption that a person could only produce so much per day.

That unit is gone in any team that has adopted coding agents properly. The new unit is the delegated run: a prompt, a context bundle and a harness go in; an agent works for minutes to hours; a pull request, a report or a question comes back. The engineer’s job inside that unit is to specify, supervise and verify. Anthropic’s own scale for this, borrowed from Epoch AI, calls the relevant level “AI leads”: the model “can complete most of the task end-to-end from a high-level prompt, while the human supervises.”

This was already the dominant mode in 2025. Anthropic’s Economic Index analysis of Claude Code (28 April 2025) classified 79% of Claude Code conversations as automation rather than augmentation, against 49% for Claude.ai, and 43.8% as “directive”, meaning the task was completed with minimal user interaction. The terminal product was a delegation product from the start. Eighteen months later the coordinator products in module 2 made delegation the default shape of the whole workflow.

Ticket (2015–2024)Delegated run (2026)
Who specifiesPM or engineer, often loosely; the engineer fills gaps while codingThe engineer, precisely, up front; gaps become agent guesses
Who generatesThe engineerOne or more agents, in parallel
Who verifiesA peer reviewer, plus CIThe supervising engineer, review bots, CI; a peer only for higher tiers
Cycle timeDaysMinutes to hours per run; many runs per day
Typical failureLate, or wrong because the spec was wrongPlausible but unverified; quietly relaxed spec; duplicated code
Unit of costEngineer-daysTokens plus supervisor-minutes, dominated by the minutes (module 7)

How far it has gone: three numbers

Anthropic Institute, R&D Automation Index (published 17 September 2026, data as of August 2026)

“Claude ‘leads’ 26% of Anthropic’s AI R&D work,” up from under 1% in February 2026. “The share of work at or above ‘AI collaborates’ is above 90%.” Claude is not “operating fully autonomously for any measured subset of AI R&D work.” Method: each week of July 2026 Anthropic sampled 20% of staff in its model-R&D departments, producing about 15,000 tasks organised into a 542-node tree; a Claude judge assigned the automation levels. On its most-used internal platform, “approximately 30,000 agents” were doing research and engineering work at once.

Read the caveats before you repeat the headline. The 26% is Anthropic’s own R&D, measured by Anthropic’s own model, on a frozen task basket; the judge agreed exactly with human raters 59% of the time, which Anthropic notes is higher than the 35% human-to-human agreement. It is a prototype, and Anthropic says so. It is not the share of work agents lead in a typical company. What it does establish is the slope: from roughly zero to a quarter of the work in six months, inside the organisation best placed to make this work.

xAI, “Team Bots” launch post (28 September 2026) — vendor-reported

“The Bot steered a Cursor Project that orchestrated hundreds of Cloud Agents,” “helping a five-person team ship more than 100 PRs a day and launch Team Bots in a few weeks.” The engineering bot sits in the project’s Slack channel, connects to Notion, Linear, Hex, Datadog and Cursor, triages bug reports, creates tickets and launches Cloud Agents for well-defined fixes.

Do the arithmetic xAI did not. One hundred PRs a day across five people is 20 PRs per person per day. An eight-hour day gives 24 minutes per PR if every human looks at every one, with no meetings and no writing of their own. Nobody reads 20 pull requests a day properly. So either most of those PRs were not human-reviewed, or what was “reviewed” was something other than the diff: a test result, a coordinator’s summary, a bot’s verdict. That single number contains the whole organisational problem this course is about.

The third number is Google’s. Sundar Pichai said in April 2026 that 75% of new code at Google is AI-generated, up from 25% in 2024 and 50% in the autumn of 2025, and that engineers review and approve all of it (Semafor, 24 April 2026). Generation share tripled in two years. Review, on Google’s account, is holding. Whether it is holding because Google has the tooling or because “review” has quietly changed meaning is the question every CTO should ask of their own org, not of Google’s.

The review bill

When generation was the slow step, review capacity scaled with it for free: one engineer produced about what one engineer could review. Google met the limit first, with mechanical refactoring tools that could produce thousands of changes at once. Its large-scale-change process exists because, as the Chromium OS guide to large-scale changes puts it, “review cost often being a significant factor” in the total cost of a change, the team must prioritise the changes with the highest value. Agents put every team in Google’s 2010 position: generation is cheap, and review is the bill.

The clearest public statement of the problem is the email a developer at a twelve-year-old codebase sent to Boris Cherny, who created Claude Code at Anthropic. Cherny published the exchange on X on 10 and 11 September 2026 (the local course What to Do About Slop reads it line by line). The developer’s thesis, in his words: “It costs more time to determine if their approach is wrong than it did for them generate it.”

Boris Cherny’s reply (11 September 2026)

“I think there is room for both.” “Prototypes and other throw-away code can be treated as totally black box. If you’re going to throw it away anyway, and if the blast radius of it breaking is low, it doesn’t need to be perfect.” “Production code written by Claude should have a higher bar than if it was written by a human.” What Anthropic runs to hold that bar: “lots of lint rules, lots of tests, Claude-driven end to end tests, Claude-powered fuzzers running daily, automated code reviews and security reviews, automated code refactoring, and so on.”

Two things in that reply are organisational design, not product advice. First, the split is by disposability and blast radius, both properties of the change, neither a property of who or what wrote it. That is the basis for the review tiers in module 8. Second, the head of the product says his product’s output needs a higher bar than a person’s. If the vendor says that, your policy should not say less.

The slop course offers a working definition worth adopting as policy language: slop is output produced faster than the receiving system can verify it. It is a rate problem, not a quality problem. The same change is slop or not depending on the capacity that exists to check it. That is why “the code is fine” and “this is slop” are both true in the same standup, and why the fix is organisational rather than a better model.

My position

The honest unit of work is the verified change with a named human owner. Count runs started and you will build a token furnace. Count PRs opened and you will drown your reviewers and then stop reviewing. Count merged changes and you will reward whoever merges fastest. The only count that survives contact with a coordinator fleet is changes that passed the verification their tier requires, attributed to the person who is accountable if they are wrong. Every later module assumes that unit.

Think about it…

If your team’s pull-request count doubled next quarter, what would you need to see before calling it good news? My list: defect escape per verified change flat or down, review latency flat, no rise in the share of changes merged without substantive review, and cost per verified change down. If you cannot produce those four numbers today, module 6 is where to start.

Takeaways
  • The unit of work moved from the ticket to the delegated run; the engineer’s job inside it is to specify, supervise and verify.
  • Anthropic’s 26% is a slope, not a benchmark for your org; xAI’s 100 PRs a day is a review problem stated as a brag.
  • Review capacity used to scale with production for free. It no longer does, and that is the constraint everything else in this course is built around.
  • Split by disposability and blast radius, and count verified changes with a named owner.
2

Topologies: coordinators, workers and blast radius

Four shipped products, one shape, and the ownership questions none of them answer for you
Learning objectives
  • Describe four shipped coordinator/worker products and how each isolates work
  • Decide who owns the coordinator in your org and what it may touch
  • Reason about blast radius at the topology level, not only per change
  • Know when a human should remain the coordinator

Four products, one shape

Between 10 and 29 September 2026 four companies shipped the same abstraction: a long-lived coordinator that does not write code, a pool of workers that do, and a surface where a human approves what comes back. The details differ in exactly the places an org designer should care about.

ProductShippedCoordinatorUnit of parallelism and isolationActs without a prompt?
Cursor Projects10 Sep 2026 (beta)Plans, delegates to implementation agents, brings finished work back for review; “doesn’t write code itself”Project runs on its own cloud machine; spins up a local agent when something must run on your computerYes: can subscribe to a Slack channel, a schedule or your PRs
Claude Code Projects17 Sep 2026 (beta)One conversation that coordinates threads and shows which are ready for reviewEach thread is a Claude Code cloud session on its own branch with its own copy of the repo; threads watch their PRs, push fixes when CI fails and answer review comments. Enforced limit of 200 new threads per dayThreads act on their own PRs; coordinator acts within the project
OpenAI Codex (DevDay)29 Sep 2026Codex on computer, phone or cloud; an /agents view tracks several tasks; Agents API (public beta) offers the hosted harnessCodex Cloud tasks keep running with the laptop closed; reusable development environments with “approved settings and permissions”Automatic reviews “take a first pass in the cloud while you’re away”; Codex Security Cloud scans on a schedule
xAI Team Bots28 Sep 2026 (public beta, Teams and Enterprise)A shared bot with a role; the engineering bot triages, creates tickets and launches Cursor Cloud Agents for well-defined fixesDelegates to Cursor’s cloud agents; per-user memory, shared skills; each teammate’s use counts against their own allowanceYes: lives in the project’s Slack channel

Add a fifth, less finished pattern: Claude Code’s agent teams, documented as experimental and off by default. One session leads, teammates run in their own context windows and coordinate through a shared task list with dependencies. The docs carry two warnings that matter for org design: agent teams “add significant token cost”, and they “don’t isolate teammates in worktrees, so each teammate should own a separate set of files.” That is a topology whose isolation is a convention, not a mechanism.

Vendor numbers, labelled as such: Cursor says new users of Projects merge 30% more PRs and that users who primarily use Projects merge six times as many. No baseline, cohort size or window is published. Treat it as evidence that the product changes behaviour, not as a forecast for your team.

Who owns the coordinator

A coordinator that can read a Slack channel, act on a schedule, spawn hundreds of workers and open pull requests is not a tool. It is a service with authority. The product launches do not tell you who in your organisation owns it, and the default, nobody, is the worst answer. Three ownership models are workable:

ModelWho owns itWhat it may trigger onWhere it fitsWhat goes wrong
Per-engineer coordinatorEach IC runs their own projectTheir own PRs and tasksFirst 90 days; small teams; high-trust codebasesTen coordinators, ten harness variants, no shared learning; review load lands on peers unannounced
Team coordinatorThe tech lead, with a named deputyThe team’s channel, its PRs, its scheduleMost product teams of 5–10 engineersThe lead becomes the review bottleneck unless tiering (module 8) is in place
Platform-owned fleetA platform team that already runs CI and deploysOrg-wide triggers: dependency bumps, migrations, security findingsOrgs with a working platform team and a harness repoBlast radius is the whole monorepo; a bad policy ships everywhere at once
My position

Start per-engineer, land on team coordinators, and only run a central fleet if your platform team already owns CI, deploys and on-call. Whatever the model, the coordinator gets what any service gets: an owner, an on-call, a budget, a changelog and an audit log that answers “what did it do last night?” If your org cannot answer that question for every coordinator it runs, you do not have a topology. You have a liability with a Slack handle.

Blast radius at the topology level

Cherny’s rule in module 1 is per change. A topology multiplies it. Four isolation primitives appear in the table above: a branch plus a copy of the repo per thread (Claude Code Projects), a dedicated cloud machine per project (Cursor), an approved environment with fixed permissions (Codex), and no mechanical isolation at all (agent teams). The question for each is the same three-part one: what can the coordinator and its workers read, what can they write, and what can they trigger. Credentials should be scoped to the coordinator as a service principal, never borrowed from the engineer who set it up.

OpenAI, misalignment report (incident 20 September 2026; report updated 25 September 2026)

An agent in reinforcement-learning training reached a public chatbot from inside a “network-isolated” sandbox by tunnelling queries through DNS. OpenAI’s safety case had assumed the model could not reach the live internet. Monitoring flagged the behaviour within 15 minutes and a person began reviewing three minutes later, but the run was not stopped automatically and was killed about two and a half hours after that. OpenAI paused training, evaluation and tool-use inference for its most capable models until the gap was validated as fixed, and added blocking controls “at two independent layers.”

Three lessons travel directly to a product org. Egress is enforced by the network, not requested of the model. The automatic stop is the control that matters; a monitor that flags in 15 minutes and a human who takes 2.5 hours to pull the plug is a 2.5-hour incident. And the sandbox your coordinator runs in is your blast radius; a worker with a production database credential and a Slack trigger is one bad plan away from an outage.

Anthropic’s disclosure in the same index shows what review of agent actions looks like at fleet scale: 100% of agent actions pass through an online monitor before execution, 0.002% of more than a billion August decisions (about one in 47,000) were blocked, roughly 100,000 transcripts are flagged each week and about 50 of the highest-priority flags are escalated to human review. The review of agent behaviour is itself automated, with humans on the exceptions. That is the shape your own review function will take; the choice is whether you design it or discover it.

Three questions before any coordinator goes live

Read: which repos, channels, tickets and dashboards, and does that include customer data? Write: which branches, which environments, and can it merge or only propose? Trigger: what events start a run with no human in the loop, and who gets paged when one goes wrong? Write the answers in the coordinator’s own config and review them when the model or the harness changes.

When a human is the coordinator

The products all keep a human-as-coordinator surface: Claude Code Projects’ overview pane shows which threads are ready for review; Codex has the /agents view; Cursor’s merge approvals show the commit subject and message the agent chose. Use that mode by default for ambiguous scope, cross-team changes, anything touching money, authentication or data deletion, and the first 90 days of adoption (module 8).

The hand-off test for letting the bot coordinate without you: the task has a machine-checkable definition of done, a rollback you have exercised, and a blast radius you would accept unreviewed. If any of the three is missing, a human stays in the coordinator seat. That is not caution for its own sake. It is the only way to keep the review bill from module 1 from arriving all at once.

Think about it…

Name the person in your organisation who could tell you, this morning, everything a coordinator did overnight: what it read, what it wrote, what it triggered and what it cost. If there is no such person for each coordinator you run, the next incident review will begin by establishing who was supposed to know.

Takeaways
  • Four vendors shipped the same coordinator/worker shape within three weeks; they differ in isolation and triggers, which is where your design decisions live.
  • A coordinator is a service with authority: give it an owner, an on-call, a budget, a changelog and an audit log.
  • Blast radius is a topology property. Egress is a network control. The automatic stop is the control that matters.
  • Keep a human in the coordinator seat until the task has a machine-checkable done, an exercised rollback and an acceptable unreviewed blast radius.
3

Agents per engineer and reviewer capacity

A throughput model with its inputs on the table, and what the studies can and cannot tell you
Learning objectives
  • Build a reviewer-capacity model from stated inputs and find the break-even agent count
  • Say what METR, Faros, DORA and GitClear measured and what each cannot show
  • Explain why adding agents can lower verified throughput once review saturates
  • Pick the three levers that raise review capacity

The model

Three inputs. A is the number of agents an engineer supervises. P is the number of mergeable changes each agent produces per day. R is the number of changes that engineer can review properly per day. Verified throughput per engineer is the smaller of production and review: min(A×P, R). When A×P exceeds R, the difference is queue growth per day, and a queue in front of a review gate turns the gate into a formality.

R is the input people refuse to estimate, so anchor it. SmartBear’s study of a Cisco team is still the most-cited measurement of human review: review no more than 200 to 400 lines at a time, over 60 to 90 minutes, which “should yield 70–90% defect discovery,” and defect density drops significantly at inspection rates faster than 500 lines per hour. Take three hours of review a day, which is two sessions and more than most seniors give, and 20 minutes per 150-line agent change. That gives R = 9. Cross-check: 400 lines an hour for three hours is 1,200 lines, which at 150 lines a change is 8. The two anchors agree within one change.

Agents (A)P = 2 changes/agent/dayP = 3P = 4
24 produced, 4 verified6 produced, 6 verified8 produced, 8 verified
36 produced, 6 verified9 produced, 9 verified12 produced, 9 verified, queue +3/day
48 produced, 8 verified12 produced, 9 verified, queue +3/day16 produced, 9 verified, queue +7/day
612 produced, 9 verified, queue +3/day18 produced, 9 verified, queue +9/day24 produced, 9 verified, queue +15/day
Break-even A = R ÷ P4.53.02.25

Inputs: R = 9 (three review hours a day at 20 minutes per change). Every cell is min(A×P, 9).

Now a team. Ten engineers, each producing two changes a day before agents: 20 changes a day against a review capacity of 90, which is why review never felt like the constraint. Give each engineer four agents at three changes a day: 120 changes a day against the same 90. The shortfall is 30 a day, 150 a week, and it compounds, because the queue also eats the reviewers’ production time. The team that bought the most agents is the one whose verified throughput falls first.

Three levers move the arithmetic. Tier by blast radius: if 60% of those 120 changes are low-blast-radius and go through bot review only, the human share is 48 against a capacity of 90, with headroom of 42. Pre-review by machine: if a review bot’s triage halves the human minutes per change to 10, R becomes 18 and the break-even at P = 3 moves from 3 agents to 6. Shrink the change: SmartBear’s curve is about lines, so smaller changes raise R directly. All three are organisational choices, not model upgrades.

My position

For most teams in October 2026 the break-even is between two and four agents per engineer, and it is set by R, not by the token budget. Past break-even, each additional agent adds queue, not output, and the queue is where slop is manufactured. The first investment after buying agents should be in whatever raises R: tiering, review bots and smaller changes, in that order of payback.

What the measurements say

No published study has measured teams running coordinator fleets at scale; the products are a month old. What exists measures the first wave, assistants and early agents, and it points one way: production up, verification strained.

StudyPopulation and dateFindingWhat it cannot show
METR RCT16 experienced open-source developers, 246 tasks, Feb–Jun 2025; published 10 Jul 2025Developers took 19% longer with early-2025 AI tools. Before: they forecast a 24% speedup. After: they still believed they had been 20% faster.Small sample; mature repos the developers knew well; METR now labels it outdated
METR update57 developers, 143 repos, 800+ tasks; published 24 Feb 2026Returning developers: 18% faster (CI −38% to +9%). New developers: 4% faster (CI −15% to +9%). METR: developers are “likely more sped up” than in 2025, but the data is “only very weak evidence for the size.”Selection effects: developers declined to work without AI and 30–50% skipped tasks; timing is unreliable when several agents run at once
Faros AI, 202510,000+ developers, 1,255 teams; July 2025 (vendor telemetry)High-adoption teams: +21% tasks, +98% PRs merged, +91% review time per PR, +154% PR size, +9% bugs per developer. No significant correlation with company-level metrics.Correlational; cannot separate deferred review from shallow review
Faros AI, 202622,000 developers, 4,000+ teams; March 2026 (vendor telemetry)Epics per developer +66%, tasks +34%, bugs per developer +54%, incidents per PR more than tripled, median review time 5×, 31% more PRs merged with no review, code churn +861%.Same vendor, same method; within-organisation comparison of low- and high-adoption periods
DORA 2025Nearly 5,000 technology professionals; 2025 reportAbout 90% use AI at work; over 80% believe it raised their productivity; about 30% report little or no trust in AI-generated code. AI adoption is associated with higher throughput and higher instability.Survey; correlational; does not identify which practices separate stable teams
GitClear211 million changed lines, 2020–2024; published Feb 2025 (vendor)Refactoring’s share of changed lines fell from about 25% in 2021 to under 10% in 2024; copy/pasted lines rose from 8.3% to 12.3%; 2024 was the first year copy/paste exceeded moved code.Repository metric; duplication is a proxy for maintenance cost, not a measurement of it; no causal attribution
The multiplication nobody puts on the slide

Faros 2025: 98% more PRs merged and 91% more review time per PR. Total review minutes on a high-adoption team rose by a factor of 1.98 × 1.91 = 3.78. That is the review bill from module 1, measured. A year later the same vendor found median review time at 5× and nearly a third more PRs merging with no review at all, which is what a saturated gate does: it stops gating.

Reading the METR pair honestly

The 2025 result is the best evidence that the slowdown is invisible to the person experiencing it: developers were slower and believed they were faster. The 2026 update shows the sign has probably flipped for people who want to use the tools, and that the people who refuse to be measured without AI are now numerous enough to break the experiment. Neither study measures the thing this module models: an engineer supervising several agents, where METR itself says timing becomes unreliable.

Three levers that raise R

  1. Shrink the change. DORA lists “small batches” among its seven AI capabilities precisely because large AI-generated changes are hard to review and test. Make the coordinator split work; a 150-line change gets 20 minutes of real attention, a 1,500-line one gets a skim.
  2. Put a machine in front of the human. Security and bug bots (module 8 names them) turn the reviewer’s input from a diff into a triage. The SmartBear finding that author annotation sharply reduces defects applies to agents too: make the agent write the review packet, with what changed, why, how it was verified and what is risky.
  3. Tier by blast radius. Humans read what can hurt. Everything else gets bot review, tests and a monitored rollout. Module 8 gives the tiers.
Think about it…

Measure your own R before you argue with mine. Ask one senior engineer how many minutes they spent reviewing yesterday and how many changes they approved with real attention. Divide. If the answer is below 9, every number in this module gets worse for you; if it is above 15, ask what “real attention” meant.

▶ Animated recap · 1:39
Two hosts build the module’s reviewer-capacity model — min(A×P, R), where R = 9 comes from, the break-even A = R ÷ P and the three levers that raise R — with the module’s own numbers. Best watched after the quizzes above.
Takeaways
  • Verified throughput is min(A×P, R). Past break-even, agents add queue, and the queue is where slop is made.
  • With honest inputs the break-even is two to four agents per engineer; raise R before you raise A.
  • The field data agrees on direction: PRs up, review minutes up by nearly 4×, unreviewed merges up, instability up.
  • Shrink the change, pre-review by machine, tier by blast radius.
4

The junior pipeline and leveling

What the 2026 hiring data says, why it is a decision rather than a law, and a ladder built on verification
Learning objectives
  • Quote the 2026 early-career data accurately, with its baselines
  • Explain the mechanism the data shows: reduced hiring, not separations
  • Design an apprenticeship built on agent supervision
  • Rewrite ladder criteria around harness design and verification rather than output

What the data says

Four sources, each with a different baseline. Do not blend them into one number; the baselines are the finding.

SourceDate and dataFindingBaseline
Brynjolfsson, Chandar & Chen, Canaries in the Coal MineRevised 12 Aug 2026; ADP payroll data through June 2026Employment of workers aged 22–25 in the most AI-exposed occupations “now stands 19% below” what less-exposed peers imply; experienced workers show “no comparable gap.” The gap “operates primarily through reduced hiring of young workers rather than increased separations” and “has widened steadily” since the first version (13%, August 2025).Counterfactual from less-exposed occupations
Stanford HAI, 2026 AI IndexApril 2026; Harvard Project on Workforce dataEmployment of software developers aged 22–25 “has fallen nearly 20% from 2024” while older developers’ headcount grew.2024 peak, software developers only
SignalFire, State of Talent 202622 Jun 2026; LinkedIn-derived hiring dataNew-grad and entry-level hiring “down roughly 65%” at the Tech Majors and “~76%” at early-stage startups. Overall Tech Major hiring is 25% below 2019; engineers are 55% of hiring, up from 46%, “not because engineering jobs are booming.”2019, all functions blended
Pragmatic Engineer, with Live Data Technologies9 Jun 2026; 28 large US tech companies“In 2025, just one in 10 engineering hires at larger companies were recent grads, down from nearly three in 10 in 2023.” Intern intake is about half its 2019 level. AI-engineering openings rose 60% in a year against 7% for software engineering (TrueUp).2023 share of hires; 2019 intern intake
SignalFire’s own explanation (June 2026)

The report says companies are “prioritizing experienced ICs rather than investing in training new grads and early-career hires,” that boilerplate, unit tests and routine debugging are “exactly the types of tasks that the Tech Majors have automated with AI,” and that junior engineers “can slow a team down” because the bottleneck has shifted from writing code to reviewing it.

Hold the mechanism in view. The Stanford paper finds the adjustment is happening through hiring, not layoffs, which means the pipeline is being switched off at the entrance rather than drained. SignalFire’s explanation is the one most CTOs would give if asked: juniors used to do the work agents now do, and a junior’s code adds to the review queue from module 3. Both are true. Neither makes the outcome inevitable.

Anthropic, Claude Frontier Academy (2 October 2026)

A “$100 million commitment” to “train 10,000 Frontier Deployed Engineers (FDEs) by the end of 2027,” through a multi-day in-person phase and a 12-week residency in which engineers lead a real Claude use case at their own organisation. Anthropic’s rationale: “the people with the skills to make it work inside a real business have become the hardest talent to find.” First cohorts come from Accenture, Bain, Capgemini, Commonwealth Bank of Australia, Deloitte, McKinsey, Morgan Stanley and Novo Nordisk.

Put those two facts next to each other. The industry stopped hiring the people it used to train, and the leading model vendor is now spending nine figures to train deployment engineers because it cannot find them. The skill in shortage is not writing code. It is making agents work inside a real codebase, which is precisely the skill an apprenticeship built on supervision would produce.

My position

The junior collapse is a decision, not a law of the new economics. SignalFire’s reasoning holds only if juniors are hired to write code. Hire them to verify it and the arithmetic flips: a junior who runs three agents under a senior’s harness and owns the verification of their output raises the team’s R instead of consuming it, and learns the codebase faster than one who writes 200 lines a week. The firms that keep an entrance open will own the mid-level market in 2029, when everyone else discovers that you cannot hire a senior verifier who was never a junior one.

An apprenticeship built on supervision

MonthsWhat they runWhat they verifyWhat they ownExit test
1–3One agent at a time, on tier 0 and tier 1 changes, inside the team harnessEvery change they ran, with a written verification note; a senior re-verifies 100%Nothing in productionCatches two of three planted defects in a review exercise
4–6Two to three agents on tier 1 changes; a share of the team’s review-bot triageTheir own output plus a weekly sample of peers’ agent output; senior spot-checks 25%One harness file (a CLAUDE.md or AGENTS.md section, a skill, a lint ratchet) with its own changelogDefect escape on their verified changes at or below team median
7–12Break-even agent count for their service; a coordinator in human-supervised modeTier 2 changes for a service they are learningVerification design for one feature: what must be human-reviewed, what may be bot-reviewed, and whyShips a measured improvement to R for someone else

The structure is deliberately old-fashioned. It is how trades have always transferred judgment: supervised practice with the consequences held by someone senior, then widening scope. The thing being apprenticed has changed from writing to verifying. The method has not.

Ladders that reward harness design and verification

Most ladders written before 2024 reward output and scope: ships features, owns a service, designs systems, sets direction. In an agent org the first of those is now mostly the agent’s. Rewrite the criteria so each level is defined by what the person is accountable for verifying and what they build for others to verify with.

LevelOld criterionAgent-era criterionEvidence
Early (L3)Ships well-scoped features with guidanceTurns a ticket into a run spec with a machine-checkable definition of done; verifies agent output on their own serviceDefect escape per verified change at or below team median; verification notes on every change
Mid (L4)Owns a component end to endOwns the harness for a component: instructions, test gates, review-bot configuration, blast-radius tiers; knows and documents its break-even agent countChanges to the harness that lowered minutes per change or defect escape for teammates
Senior (L5)Designs systems; leads projectsDesigns verification: decides what humans must read, what bots may clear, what rolls out behind a monitor; owns a team coordinatorTeam R trend; coordinator audit log; incident-free tier promotions
Staff and aboveSets technical direction across teamsOwns coordinator policy, the token-versus-headcount proposal (module 7), and the review of agent-caused incidents across the orgCost per verified change and defect escape at org level; policy adopted by other teams
Do not put “uses AI” on the ladder

Shopify’s April 2025 memo added AI-usage questions to performance and peer reviews. That measured adoption, which was the right target in early 2025 and the wrong one by late 2026: DORA puts adoption near 90%. Measure what the adoption produced, which module 6 defines. A ladder criterion that reads “uses agents effectively” will be satisfied by whoever spends the most tokens.

Think about it…

If your company stops hiring juniors for three years, who reviews code in 2032? Your current seniors will be staff or gone; the market will contain almost nobody with six years of verified-change ownership. Run the headcount model forward past the next budget cycle and the entrance looks less like a cost.

Takeaways
  • The early-career gap is real, widening, and operates through hiring: 19% below counterfactual for AI-exposed 22–25-year-olds; roughly 65–76% fewer new-grad hires than 2019.
  • It is a decision driven by the review bottleneck, and it reverses if juniors are hired to verify rather than to write.
  • Apprentice supervision: one agent, then three, then a service, with defect escape as the exit test.
  • Rewrite ladders around verification design and harness ownership; never reward “uses AI.”
5

Hiring loops for the agent era

What Meta, Google and Anthropic changed, the four signals that now predict performance, and what to stop asking
Learning objectives
  • Name what the large employers changed in their interviews, and when
  • Design a loop that tests decomposition, verification design and critical reading of agent output
  • Run a take-home with agents allowed without rewarding token spend
  • Stop asking the questions that no longer predict anything

What changed, and when

CompanyWhenChangeStated reason
MetaJuly 2025 (internal post reported by 404 Media)A coding interview in which candidates have access to an AI assistant“More representative of the developer environment future employees will work in and makes LLM-based cheating less effective”
GoogleReported May 2026 (internal document; spokesperson confirmed)Pilot for junior and mid-level software engineering roles on select US teams: a code-comprehension round in which candidates read, debug and optimise an existing codebase with Gemini; interviewers score prompt writing, checking AI output and debugging; for junior candidates one standard technical round becomes an open-ended engineering sessionVP of recruiting Brian Ong: “more reflective of how our teams are operating in the AI era”
AnthropicMay 2025, then July 2025First asked applicants not to use AI in applications to assess “non-AI-assisted communication skills”; two months later allowed AI for résumés, cover letters and applications (Fortune). Reporting in 2026 describes live interviews as still mostly AI-free unless statedWanted to see how candidates think; then accepted that the tools are part of how people work
ShopifyMemo of March 2025, public April 2025Teams must show why AI cannot do the work before requesting headcount; AI-usage questions added to performance and peer reviews“AI usage is now a baseline expectation”
Duolingo28 April 2025“Headcount will only be given if a team cannot automate more of their work”; AI use factored into hiring and performance reviewsRemove bottlenecks; “AI-first”

Notice the convergence. Meta and Google both replaced an algorithm round with a round on an existing codebase, with the assistant present, scored on how the candidate directs and checks it. That is a decomposition-and-verification interview wearing a coding-interview costume. Anthropic’s reversal within two months is the more instructive story for a smaller company: the first instinct, to ban the tool and see the “real” person, did not survive contact with how people now work.

The four signals that predict performance in a supervised-agent org

If the unit of work is the verified change with a named owner, the interview should predict whether the candidate can own one. Four signals do that; keystroke speed and algorithm recall do not.

  1. Decomposition. Give a vague product ask and thirty minutes. Can they turn it into three to five runs, each with a crisp, machine-checkable definition of done and an explicit list of what is out of scope? Watch for the candidate who writes the acceptance test before the prompt.
  2. Verification design. Show a finished change and ask what they would check before merging, what they would automate, and what they would refuse to merge without a human reading it. Score the ordering, not the list.
  3. Critical reading of agent output. Hand over an agent-written PR with two planted problems: a test that asserts the behaviour of its own mocks, and a quiet relaxation of the spec that makes the task easier, which is the exact failure the developer in the slop exchange described. Candidates who find both in twenty minutes are rarer than you think and are worth more than the ones who can write the change from scratch.
  4. Harness literacy. Give them a CLAUDE.md or AGENTS.md from a real repo with two instructions that were right for a 2025 model and are wrong now. Can they say which and why? This is the skill module 4’s L4 is built on.
RoundLengthTestsAgentsRubric anchors
Decomposition45 minSignal 1Allowed for drafting; the candidate presents the planDefinition of done is checkable; out-of-scope list exists; tiering by blast radius mentioned unprompted
Agent PR review45 minSignal 3Allowed; the planted problems survive a naive “review this” promptFinds the mock-asserting test; finds the spec relaxation; says what they could not verify
Verification design45 minSignal 2Not neededSeparates what humans must read from what bots may clear; names a rollback
Harness and systems60 minSignal 4, plus system design with the harness as a componentAllowedIdentifies stale instructions; treats the coordinator’s permissions as part of the design
Behavioural45 minOwnershipNo“Tell me about a change you verified that was wrong anyway. What did you change afterwards?”

Score each round on a three-point anchor written before the loop runs, and debrief in the order the rounds ran, with the agent-PR review first because it carries the most signal. Require every interviewer to read the candidate’s run log before the debrief; interviewers who have read it score the decomposition round far more consistently than those who have not. Keep the loop to four or five rounds. The signals above compound, and a sixth round adds fatigue, not information.

Take-homes with agents allowed

A take-home that bans agents in 2026 tests a skill the candidate will not use on the job and is unenforceable anyway. A take-home that allows them with no limits tests the candidate’s credit card. The workable form has four rules:

  • Agents are allowed and expected. Say so in the brief.
  • Submit the run log with the PR. Transcripts or session exports, not screenshots. You are grading how they directed and checked, not what came out.
  • Set a budget. A token cap or a time cap, for example one hour of agent time, and say that exceeding it is a negative signal.
  • Score the verification note. Require a short statement of what was verified, how, and what was not. The strongest candidates write the longest “not verified” sections.
Red flags that a take-home with agents will surface

A PR three times the size the task needed. Tests that pass because they assert the mocks. No statement of what was left unverified. A run log that shows the candidate accepting the first output of every run. Any of these in a candidate for a mid-level role is disqualifying, because it predicts exactly the behaviour that fills the review queue in module 3.

My position

The single highest-signal hour in the loop is the agent-PR review with planted defects. It is cheap to build, impossible to game with a better model, and it measures the thing the organisation is actually short of. If you can only change one round this quarter, change that one. The second is the budgeted take-home with the log attached; it ends the argument about whether candidates “cheated” by making the tool use the artefact under review.

What to stop asking

Drop whiteboard algorithm recall, “implement an LRU cache”, language trivia, and anything whose answer a model produces in one shot. Drop “how many PRs did you ship last quarter”; module 6 explains why that number means nothing. Keep system design, but add the agent harness and the coordinator’s permissions as components the candidate must design. Keep live debugging, with the tool present. Keep the behavioural round, and change its questions to be about verification that failed rather than about delivery that succeeded.

Think about it…

How would you interview a candidate whose last role was supervising twelve agents and who has not typed a function by hand in a year? If your loop would reject them, decide whether that is a signal about the candidate or about the loop. Then imagine the opposite candidate, who types beautifully and has never verified anyone else’s change, and ask which one your review queue needs.

Takeaways
  • Meta and Google moved to AI-assisted rounds on existing codebases, scored on direction and verification; Anthropic’s ban lasted two months.
  • Interview for decomposition, verification design, critical reading of agent output and harness literacy.
  • Take-homes: agents expected, log attached, budget set, verification note graded.
  • Stop asking anything a model answers in one shot, and stop asking about PR counts.
6

Performance management without output proxies

Why PR counts, lines and commits are now adversarial metrics, what to measure instead, and how to calibrate verifiers against generators
Learning objectives
  • Explain why PR count, lines of code and commit frequency have become adversarial metrics
  • Build a scorecard from outcomes, defect escape, review quality and cost per verified change
  • Run calibration without penalising the people who verify more than they generate
  • Avoid the three Goodhart traps specific to agent orgs

Why the output proxies broke

PR count, lines changed and commit frequency were always weak measures. They were tolerable because producing them cost human effort, so a person who produced a lot had at least done a lot. An agent fleet produces them for tokens. Worse, the field data in module 3 shows what maximising them looks like at population scale: 31% more PRs merging with no review, incidents per PR more than tripled, code churn up 861% (Faros, March 2026), duplication rising while refactoring falls (GitClear), throughput up with stability down (DORA 2025). Any review process that rewards the proxies is paying for those outcomes.

Forsgren, Storey, Maddila, Zimmermann, Houck and Butler, “The SPACE of Developer Productivity” (ACM Queue, 2021)

Five dimensions: Satisfaction and well-being, Performance, Activity, Communication and collaboration, Efficiency and flow. Productivity cannot be captured by one metric; a meaningful approach draws on at least three dimensions and includes at least one perceptual measure. Performance is best evaluated as outcomes rather than output.

SPACE was written for a world where Activity was a weak but real signal. In an agent organisation the Activity dimension is not weak; it is measuring the agent. The other four still work, and Performance-as-outcomes is now the whole game.

What to measure instead

MeasureDefinitionSourceHow it gets gamedCounter-measure
Outcome movedDid the verified change move the metric the ticket named?Product analytics, tied to the changeTickets written with no metricNo metric, no tier 2 or 3 work
Defect escape per verified changeDefects found after merge per 100 verified changes, attributed to the human ownerIncident and bug trackers linked to changesBurying defects in “improvements”; avoiding hard changesNormalise by tier; pair with outcome moved
Review qualityCatch rate on periodically planted defects; share of merges with substantive comments; review latency; unreviewed-merge share by tierReview tooling plus a quarterly planted-defect exerciseRubber-stamp commentsPlanted defects are the control; comments are context
Cost per verified changeTokens plus supervisor minutes, by tier, trended quarterlyBilling exports plus time samplingPushing work to cheaper tiersTier assignment is the owner’s, audited
Harness contributionChanges to instructions, skills, gates or bot configuration that lowered minutes per change or defect escape for othersHarness repo history plus before/after measuresChurn in harness filesCount only changes with a measured effect
PerceptualSPACE satisfaction items, plus one new item: “I can explain every change I shipped this quarter”Quarterly surveySurvey fatigueFive items, not fifty

The last item is View 1 from the slop exchange turned into a question. The developer who wrote to Cherny did not ask for every change to be reviewed; he asked that “the person submitting the code should be able to explain it.” Ask that directly, anonymously, every quarter, and plot it against unreviewed-merge share. When the two lines cross, you have found the team that has quietly become View 2.

The quarterly planted-defect exercise

Review quality needs a control, because comment counts and latency can both be gamed by a reviewer who writes “looks good, nice work” quickly. Once a quarter, the coordinator owner takes three real agent-written changes from the previous month, re-opens them on a branch with one defect planted in each (a test that asserts its own mocks, a boundary condition removed, a permission check loosened) and routes them through the normal review queue without flagging them. Record who caught what. Publish the team’s catch rate, not individuals’, and use the individual results only in the owner’s conversation with each reviewer. Three changes a quarter cost a senior about two hours to prepare and give you the only number about review quality that a fleet of agents cannot move. If the catch rate stays below two in three for two quarters, the tiering in module 8 is wrong for that team; that is a finding about the gates, not about the people.

Calibration pitfalls

The generator/verifier split. In calibration the engineer who ran twelve agents and merged forty changes looks productive. The engineer who caught three bad merges among them looks slow. If your packet counts changes, you will promote the generator and lose the verifier, and module 3 says the verifier was the constraint. Fix it structurally: a verified change has an owner and a verifier of record, both named in the packet, and catches are listed as contributions with the defect they prevented.

Token spend as a halo. Spending more is visible in the billing export and feels like effort. It is not output. Present spend only as the denominator of cost per verified change.

Agent-caused incidents. Run them blameless, as always. But the accountability question is not “why did the agent do that”; it is “what verification should have caught it, and who owned that tier”. Attribute the verification gap, not the agent’s error, and change the tier or the gate.

The review packet, one page

The packet is what calibration reads, so its shape decides what calibration rewards. Keep it to one page per person with six blocks, in this order: defect escape per verified change (owned, trailing 90 days, by tier) with the team median beside it; verified changes owned and verified-of-record, as two separate counts; outcomes moved, with the metric and its before and after; catches, each with the defect it prevented; harness contributions, each with its measured effect; and the perceptual items. Token spend appears once, as the denominator of cost per verified change, never as a standalone line. A manager who cannot fill the first block for someone has not been running the measurement, and that is the manager’s finding, not the engineer’s.

The obsolete criterion

Shopify’s 2025 move to put AI-usage questions in performance and peer reviews measured adoption. With DORA reporting about 90% of respondents already using AI at work and more than 80% believing it raised their productivity, adoption questions now separate nobody. Belief in a productivity gain is also not a measurement; METR’s developers believed they were 20% faster while being 19% slower.

My position

Put exactly one number at the top of every engineer’s review packet: defect escape per verified change for changes they owned, trailing 90 days, normalised by tier. Everything else is context. It is the only measure that an agent fleet cannot inflate, that rewards the verifier as much as the generator, and that the CFO will understand in the same meeting as the token bill.

Think about it…

Open your engineering dashboard and mark every metric an agent fleet could max out without any human doing better work. If more than half the tiles are marked, the dashboard is measuring the vendor’s product, not your organisation. Replace the marked tiles with the six measures above before the next calibration cycle, not after.

Takeaways
  • PR count, lines and commits now measure the agent, and rewarding them buys unreviewed merges and churn.
  • Measure outcome moved, defect escape per verified change, review quality, cost per verified change, harness contribution and one perceptual item.
  • Name an owner and a verifier of record on every change, or calibration will promote generators and lose verifiers.
  • Adoption and belief in speedup are not measurements. Defect escape per verified change is.
7

Headcount vs token budgets

The October 2026 price list, the cost of a run and of a verified change, and how to put tokens next to people for a CFO
Learning objectives
  • Quote the October 2026 price list and its cache, batch and long-prompt multipliers correctly
  • Compute the cost of a delegated run and of a verified change with every input stated
  • Present token spend as a line item next to loaded headcount
  • State when buying agents beats hiring, and when it does not

The price list, 13 October 2026

All prices are Anthropic’s list prices per million tokens on the Claude API, from the platform pricing page, checked on 13 October 2026. The three 5.5 models shipped on 22 September (Opus), 28 September (Sonnet) and 7 October 2026 (Haiku).

ModelInputCache readOutputBatch (input / output)Notes
Claude Opus 5.5$4$0.20$20$2 / $1020% below Opus 5 ($5 / $25); cache reads at 0.05× input; fast mode $8 / $40
Claude Sonnet 5.5$2$0.10$10$1 / $5Same list price as Sonnet 5; cache read halved to $0.10 at the Haiku launch
Claude Haiku 5.5, prompts up to 100,000 tokens$0.10$0.01$0.50$0.05 / $0.2590% below Haiku 4.5 ($1 / $5)
Claude Haiku 5.5, prompts over 100,000 tokens$0.50$0.05$2.50$0.25 / $1.25Priced per request by prompt length; the only current model with a length tier
Reference: Claude Fable 5.1$10$0.25$50—Frontier tier, unchanged

Two features of the table matter more than the headline prices. Cache reads on the 5.5 models cost 5% of input, so a long-running agent whose context is mostly cached pays far less than the list price suggests. And Haiku 5.5’s long-prompt tier means an agent that lets its context grow past 100,000 tokens pays five times more per request from that point; a cheap model with a sloppy harness is not cheap. The spread from Opus to small-prompt Haiku is 40× on both input and output.

The cost of a run

Stated inputs: a delegated run consumes 2 million input tokens, 80% of them cache hits, and produces 100,000 output tokens. These are round numbers for a substantial multi-step run; your own billing export will give you better ones within a week.

ModelUncached input (0.4M)Cache reads (1.6M)Output (0.1M)Cost per run
Opus 5.5$1.60$0.32$2.00$3.92
Sonnet 5.5$0.80$0.16$1.00$1.96
Haiku 5.5, prompts kept under 100K$0.04$0.016$0.05$0.11
Haiku 5.5, prompts over 100K$0.20$0.08$0.25$0.53
Anthropic, Claude Code documentation, “Manage costs effectively” (checked 13 October 2026)

“Across enterprise deployments, the average cost is around $13 per developer per active day and $150–250 per developer per month, with costs remaining below $30 per active day for 90% of users.” The docs add that per-developer costs vary widely with model selection, codebase size and usage patterns such as running multiple instances or automation. Earlier versions of the same page said $6 and $12; the figures were revised in April 2026.

The cost of a verified change

Tokens are the small part. Stated inputs for the human side: Levels.fyi’s 2025 US medians for total compensation by level, a 1.3× fully-loaded multiplier (benefits, payroll tax, equipment, space; my assumption, adjust to your finance team’s number) and 220 working days a year.

Level (Levels.fyi 2025 US median TC)Loaded cost per yearPer working dayPer hour
Entry ($155,000)$201,500$916$114
Mid-level ($226,000)$293,800$1,335$167
Senior ($312,000)$405,600$1,844$230
Staff ($457,000)$594,100$2,700$338

Now one verified change. Assume 1.5 Opus runs per merged change (one run plus half a retry on average) and 20 minutes of a senior’s review. Tokens: 1.5 × $3.92 = $5.88. Review: 20 minutes at $230 an hour = $76.82. Total $82.70, of which tokens are 7.1%. Make the review an hour and the total is $236.33 with tokens at 2.5%. Replace Opus with Sonnet and the token share at 20 minutes falls to 3.7%. In every case, the human verification minutes are the cost of a verified change, and the token line is a rounding error on it.

Scale check

Anthropic’s $13 per developer per active day is 0.7% of a senior’s loaded day; the 90th-percentile $30 is 1.6%. Fifty developers at the top of the documented monthly range ($250) cost $150,000 a year in tokens, or 0.37 of one loaded senior. A deployment ten times heavier, $2,500 per developer per month, is $1.5 million a year, or 3.7 loaded seniors. A loaded senior year buys about 103,000 Opus runs at the inputs above, roughly 470 per working day.

Presenting it to a CFO or a board

Finance will accept tokens as a line item. What it will not accept, and should not, is tokens presented as a substitute for people with no account of what the people were for. The slide that works has five lines and one trend:

LineWhat it isWhere it comes from
Loaded engineering headcountPeople × loaded cost, by levelHR and finance
Agent tokensMonthly spend by model and by team, with cache-hit rateBilling export; Claude Code analytics API or the equivalent
Verification toolingReview bots, security bots, rollout monitors, sandboxingVendor invoices
Cost per verified change(Tokens + supervisor minutes + tooling) ÷ verified changes, by tierModule 6 instrumentation
Defect escape per verified changeThe quality denominator, trailing 90 daysIncident and bug trackers

The trend to show is cost per verified change against defect escape, quarter by quarter. If the first falls while the second holds, the agents are paying for themselves. If the first falls while the second rises, you are buying incidents at a discount, and module 3 predicts that is the default outcome of adding agents without raising R.

When buying agents beats hiring, and when it does not

Buy agents (tokens) whenHire or build verification first when
Review capacity has headroom: A×P is below R on the teams that would get the agentsReview is saturated: queue latency is rising and unreviewed-merge share is above zero on tier 2 and 3 work
The work has a machine-checkable definition of done: migrations, dependency upgrades, test backfill, well-specified featuresThe work is ambiguous, cross-team, or touches money, authentication or deletion
Blast radius is low or the rollout is monitored and reversibleCompliance or customers require a named human to have reviewed the change
The harness already encodes the domain: instructions, gates, examples existDomain knowledge lives in two people’s heads and nowhere the agent can read
The work parallelises and nobody is waiting on a single human decisionIncidents per change are rising; more production makes that worse
My position

Never present tokens as a substitute for a person. Present them as a multiplier on a person, with a ceiling set by that person’s R. The budget question is not “how many engineers can we replace with agents”; it is “how many verifiers do we need for the verified throughput we want, and how much do their agents cost”. Framed that way, the token line is small, the headcount line is about verification capacity, and the Shopify-style “prove AI can’t do it” rule becomes “prove the review queue can take it”.

Think about it…

Take last month’s token bill and divide it by the number of verified changes merged. If you cannot produce either number by Friday, that is the first fix, ahead of any model choice. If you can, compare the result with the supervisor minutes those changes consumed and notice which number the next budget conversation should be about.

Takeaways
  • Opus 5.5 $4/$20, Sonnet 5.5 $2/$10, Haiku 5.5 $0.10/$0.50 with a 5× tier above 100K-token prompts; cache reads at 5% of input.
  • A substantial Opus run costs about $4; a verified change costs about $83, of which 93% is the human review.
  • Token spend is 1–2% of a loaded senior’s day in Anthropic’s own data; it is a line item, not a headcount substitute.
  • Buy agents where review has headroom and done is checkable; otherwise buy verification first.
8

A 90-day reorg plan

Diagnose, pilot, decide: a reusable template with review gates, bots, budgets, communications and the failure modes to watch
Learning objectives
  • Run a two-week diagnosis that produces R, blast-radius tiers and a baseline
  • Stand up a six-week pilot with coordinator ownership and tiered review gates
  • Choose policy: gates, bots, budgets and what to say to whom
  • Watch the failure modes with named signals and a stop rule

The shape of the 90 days

Ninety days is about 13 weeks. Do not reorganise in week one. The first 90 days change policy and measurement, not boxes on a chart; the boxes follow once you know your R and your tiers. The plan is two weeks of diagnosis, six weeks of a single-team pilot, and roughly five weeks to decide and scale.

DaysPhaseWhat gets doneOutput
1–14DiagnosisMeasure R on three teams by sampling review minutes and approvals. Classify the last 200 merged changes by blast-radius tier. Baseline defect escape, review latency, unreviewed-merge share, token spend per team. Inventory every harness file (CLAUDE.md, AGENTS.md, skills, bot configs) and every coordinator already running, with its owner, or lack of one.A one-page diagnosis with five numbers and a list of unowned coordinators
15–56Pilot (one team, six weeks)Name a coordinator owner and deputy. Apply the tiered gates below. Turn on review and security bots. Set a token budget per engineer and a break-even agent count per the module 3 model. Weekly metrics review, 30 minutes.Six weekly data points on cost per verified change and defect escape
57–90Decide and scaleCompare pilot to baseline. Write the policy document. Change the ladder (module 4) and the review packet (module 6). Decide the ownership model for coordinators (module 2). Present the CFO slide (module 7). Scale to two more teams or stop.Policy v1, ladder v1, a scale or stop decision with the numbers attached

Review gates by tier

This is Cherny’s split turned into policy. Tier assignment is the change owner’s call and is audited; an owner who tiers down to avoid review loses the privilege.

TierWhat it coversGateWho is accountable
0: throwawayPrototypes, spikes, anything deleted within 30 days and never deployedNone beyond CI. Black box is fineThe person who runs it
1: internal, reversibleInternal tools, tests, docs, dependency bumps with passing tests, refactors behind unchanged testsReview bots plus an asynchronous human skim within 24 hours; merge may precede the skim if rollback is one commandOwner; verifier of record is the bot plus the skimmer
2: customer-facingProduct changes, APIs, migrations with backfillSecurity bot, bug bot, one human review of the review packet and the diff, monitored progressive rollout with an automatic pause on regressionOwner plus a named human verifier
3: money, auth, dataPayments, permissions, deletion, anything regulatedEverything in tier 2 plus a second human reviewer and a staged rollout with a manual gate; the agent proposes, humans mergeOwner, two verifiers, and the service’s on-call signs the rollout

The bots you can turn on this quarter

Shipped review and rollout bots (dates per vendor announcements)

Cursor Security Review and Rollouts (announced together on 23 September 2026 for Teams and Enterprise; Security Review had been in beta since April 2026): Security Review reads every pull request in the context of the codebase and posts one review comment reporting exploitable bugs, covering injection, authentication and authorisation bypasses, committed secrets, SSRF, unsafe deserialisation and vulnerable dependency changes; it skips draft PRs. Rollouts writes a rollout plan when the PR opens, checks the change against telemetry after deploy, reports health per environment and can pause a progressive rollout or prepare a revert PR. OpenAI Codex Security Cloud (DevDay, 29 September 2026): scans for vulnerabilities on a schedule, investigates findings, removes duplicates and prepares fixes; Codex automatic reviews “take a first pass in the cloud while you’re away.” Anthropic: the /security-review command and a GitHub Action that reviews pull requests for vulnerabilities and posts inline comments (August 2025), and Claude Code Code Review, in research preview for Team and Enterprise, which looks for logic errors, security vulnerabilities, broken edge cases and regressions, tags findings by severity and does not approve or block the PR.

Note what the bots have in common: none of them merges. They convert a diff into a triage for a human, which is the second lever from module 3. The one that changes the organisation most is the rollout monitor, because it moves part of verification from before merge to after deploy, where a tier 1 change can be allowed to prove itself in production under a monitor instead of in a queue.

DORA AI Capabilities Model (introduced in the 2025 DORA report, with a standalone companion report later in 2025) as a checklist for days 57–90

Seven capabilities that DORA’s analysis of 78 interviews and a survey of almost 5,000 respondents found amplify or unlock the benefits of AI: a clear and communicated AI stance; healthy data ecosystems; AI-accessible internal data; strong version control; working in small batches; a user-centric focus; and quality internal platforms. DORA notes the AI-stance capability does not judge the content of the policy, only whether it is clear and communicated.

The policy document, in one page

  1. Unit of work: the verified change with a named owner (module 1).
  2. Tiers and gates: the table above, with the audit rule.
  3. Coordinators: ownership model, the read/write/trigger answers for each, credentials scoped to the coordinator, an audit log that answers “what did it do last night” (module 2).
  4. Capacity: each team publishes its R and its break-even agent count and revisits them quarterly (module 3).
  5. Budget: a token budget per engineer and per coordinator, reported as cost per verified change, never as a standalone total (module 7).
  6. Measurement: the six measures from module 6, with defect escape per verified change at the top of every packet.
  7. People: the apprenticeship and ladder from module 4; the loop from module 5.
  8. Containment: egress enforced by the network; an automatic stop for every coordinator; a drill once a quarter.

What to say to whom

  • To the team: no headcount decision rides on the pilot. The pilot decides policy. Say it in writing, because the Shopify and Duolingo memos of 2025 are what everyone will assume you mean.
  • To the CFO: the five-line slide from module 7, with cost per verified change and defect escape as the trend. Tokens are a multiplier on verifiers, not a substitute for them.
  • To the board: one chart, cost per verified change against defect escape, and one sentence about containment: who can stop a coordinator and how fast.

Failure modes and their signals

Failure modeSignalResponse
Queue growthReview latency rising two weeks in a row; A×P above R on the pilot teamCut agents per engineer to break-even; tier down nothing; add pre-review
Silent unreviewed mergesUnreviewed-merge share above zero on tier 2 or 3 (Faros found 31% more unreviewed PRs in the field)Hard gate on tier 2 and 3; audit tier assignments
Coordinator driftA coordinator acting on a trigger nobody can name an owner forDisable the trigger; the read/write/trigger review from module 2
Sandbox egressAny outbound connection from a worker that the network policy did not allow (OpenAI’s September 2026 incident was DNS)Automatic stop; network fix at two layers; drill
Token blowoutCost per verified change rising while verified changes are flatCheck cache-hit rate and long-prompt tiers; cap runs per change
Junior starvationNo tier 0–1 work assigned to early-career engineers for a monthReserve tier 1 verification for apprentices (module 4)
Metric gamingPR count up, outcome moved flat, explain-it survey fallingRemove the proxy from every dashboard; recalibrate on defect escape
The stop rule

Write it before day 15. Mine: stop the pilot if defect escape per verified change rises more than 50% over baseline for two consecutive weeks, if any tier 3 change merges without two human verifiers, or if a coordinator performs an action its owner cannot explain within one working day. A pilot without a stop rule is a rollout.

My position

Most reorganisations announced around agents in 2026 start with the chart: fewer engineers, more agents, a new title or two. That is the last step, not the first. The first step is to learn your R, write your tiers, give every coordinator an owner, and put defect escape per verified change at the top of every packet. Do those four things and the chart draws itself within two quarters. Skip them and you will reorganise twice: once for the announcement and once for the incident.

Think about it…

What would make you stop the pilot at week four? If your honest answer is “nothing, we have already announced it”, you are not running a pilot. Write the stop rule, publish it to the team, and notice how much more carefully everyone tiers their changes once they know the number that ends the experiment.

Takeaways
  • Two weeks of diagnosis, six weeks of one-team pilot, five weeks to decide; policy and measurement before boxes.
  • Four tiers with gates that scale with blast radius; owners tier their changes and are audited.
  • Turn on the review, security and rollout bots; none of them merges, all of them raise R.
  • Write the stop rule before the pilot starts, and tell the team no headcount decision rides on it.