Cut Costs, Save Jobs The Ultimate Budget Shrinkage Strategy Jensen Huang has a test for whether an engineer is worth keeping and it comes with a token budget attached. Speaking on the All-In Podcast at the close of GTC 2026 Huang said that if a $500000 engineer's annual AI token consumption came in under half their salary I am going to let them go. This strategy could be applied to any company looking to shrink its token budget without reducing its workforce.
The test is designed to determine whether an engineer is worth keeping based on the amount of token they consume, with the goal of saving money by letting go of employees who don't meet certain salary requirements. Huang has stated that this approach can help companies reduce costs and make data-driven decisions about who to retain in their team.
The strategy could be applied to various industries where token budgets are being used as a tool for cost control. By setting a threshold for what constitutes a valuable engineer based on their token consumption, companies can prioritize those employees who contribute the most to the organization's success. This approach may require significant effort and data analysis from HR departments and executives to implement effectively.