Dare Obasanjo

I have a friend who’s argued to me that AI tools will allow tech companies to do more with fewer people but those people will be paid than they are today as revenue per employee goes up.

I’ve been skeptical of their argument but Block laying off 40% of staff and giving those remaining a 75% raise has given me second thoughts.

https://www.businessinsider.com/block-employee-says-quit-retention-bonus-package-offer-2026-3

Block employee says the company dangled a 75% pay raise to get her to stay after layoffs — but she decided to quit

"I saw my company discard half of my peers and double my pay," the former Block employee wrote. "That's not an honor. It feels shameful."

Business Insider
Mar 7 at 1:42pmWeb
Show threadצבי הנינג'ה عزيز النينجاMar 7
@carnage4life
I did the math. Assuming the 40% and 60% had the same average salary, they've ended spending 5% more on wages (which is very socialist of them), unless they mainly fired high-earning employees (in solidarity with the working class?).
Show threadAlberto SendraMar 7
@carnage4life it was just a larger stock grant compared to what they were already going to get after performance reviews to get people up to their expected level, and prevent mass exodus. Some only got 10% bumps.. depends on each scenario.
Show threadAionoMar 7
@carnage4life in Block case, the CEO's claim that firings are AI related is not convincing since they are still higher than their COVID over hire period. AI is just a scapegoat for the firings.
Show threadOwen MathewsMar 8
@carnage4life Watch and see how long that lasts once this kind of thing recedes from the front pages.