Scott Adams

I think that there's going to be another wave coming of a lot of layoffs, especially in the tech sector, because I think that's where AI is making the biggest impact.

It's not really because of AI, but I don't see Jack Dorsey as the type of person who would just make up a story like that, especially when he made such a big splash like this and said, we're going to get rid of basically almost half our workforce.

I think because the stock was rewarded by it significantly, like this massive pop in value.

And Jack, by the way, also explained along the way, hey, we were already profitable.

We were growing.

We're profitable.

We were profitable and growing before these layoffs.

So it wasn't a survival move.

It wasn't like we have to do this.

It was that this is better.

And this is going to be, you know, the better path.

And so he's kind of recognizing the trend of saying, okay, this is the direction we're going.

And we're already at the point where one person on my staff can use a whole team of AI agents to get a lot of stuff done really well and really quickly.

And so I don't need all these thousands of extra people.

And so he certainly seemed credible to me in terms of telling the truth about why he was doing what he was doing.

I think the problem is that, again, a lot of companies might copy him or might be forced to copy him, even if they don't want to.

Because for public companies, you have this responsibility to the shareholders to maximize shareholder value.

And now that you've seen what happened to Block, pretty much anybody who wants to be an active investor could just say, you need to do the same thing to this other tech company.

And it would be hard for them to fight it.

They would have to say, well, if you can get a 23% jump in your stock price and still be able to grow and be profitable and have a much lower expense, then of course you need to do that.