On the morning of March 31, Oracle employees across five countries opened their inboxes to find a termination email from “Oracle Leadership.” No call from a manager. No HR conversation. Just a DocuSign link and an access revocation. TD Cowen estimates the cuts will reach 20,000 to 30,000 people — roughly 18% of Oracle’s 162,000-person workforce. The usual explanation for layoffs this size is that the company is struggling. Oracle is not. Its Q3 FY2026 earnings showed net income of $6.13 billion, up 95% year over year. Remaining performance obligations — contracted future revenue — hit $523 billion, up 433%. This is not a company in revenue distress. It is a company harvesting its own SaaS workforce to fund a different business entirely. ...

Salesforce didn’t just update Slack last week. It declared that the chat window — not the CRM, not the ticketing system, not the database — is where enterprise AI gets controlled. The April 1 announcement shipped 30 new AI features, but the one that matters most barely made the headlines: Slackbot is now a Model Context Protocol client. That means it can connect to and coordinate external services, agents, and tools — including but not limited to Salesforce’s own Agentforce. As Rob Seaman, Slack’s interim CEO, put it: the bot finds “the most relevant and efficient path for the information, without human intervention.” ...

Inferential — Weekly Digest, April 3, 2026 This week, the software repricing stopped being a chart pattern and started showing up in analyst notes, layoff data, and open-source repos. Three events tell the story. ServiceNow lost 10% in a day On Wednesday, ServiceNow shares dropped 10.4% after Stifel Nicolaus slashed its price target from $180 to $135. The stated reason: “meaningfully weaker” federal government spending, as DOGE continues pruning software contracts across agencies. ...

Inferential — April 2, 2026 Last week’s post laid out the theoretical framing: sell the work, not the tool. Sequoia’s autopilot thesis, a16z’s moats argument. Both are correct about the direction. Neither tells you what the transition mechanism actually is. There’s a more mechanical explanation for why outcome-based pricing is arriving now, not five years ago. And it has less to do with philosophy and more to do with a number that SaaS companies have never had to worry about: cost of goods sold. ...

Three posts ago, the question was: does software lose value when AI can write it faster? The Q1 earnings gave us the data answer: yes, for seat-count models tied to headcount. But in March, the institutional investors started publishing their theory answers — and they’re more interesting than the data. Two essays landed within weeks of each other. They’re from firms that rarely agree on framing. On the surface they look like contradictory takes. They’re not. ...

Q1 2026 is closing with the worst quarter for software stocks since the Covid crash. IGV, the iShares Expanded Tech-Software ETF, is down ~33% from its 52-week high. Atlassian reported its first-ever systemic decline in enterprise seat counts. Workday dropped 40% from its peak as hiring slowdowns translated directly into license count reductions. More than $1 trillion in software market cap has been repriced. Our last post argued that the “AI agents will kill SaaS” narrative was mostly wrong — that what was actually happening was budget cannibalization, not product replacement. Q1 earnings are in. Let’s see what held up. ...

Software stocks just had their worst quarter since the Covid crash. IGV is down 22% from its highs. ServiceNow dropped 11% in a day — despite beating earnings for the ninth straight quarter. Microsoft shed $360 billion in market cap in 24 hours. The narrative explaining all of this: AI agents will kill SaaS. That narrative is mostly wrong. But it’s worth being precise about what’s actually happening, because the real story is more interesting. ...

I don’t know. That’s why I’m writing this. I’ve been building and investing in software long enough to have a healthy distrust of clean narratives. And right now, the AI-is-eating-software narrative is everywhere — delivered with the kind of confidence that usually means someone stopped asking hard questions. The claim goes like this: AI collapses the cost of building software, which destroys the moats, which kills margins, which ends SaaS as we know it. A solo founder can ship in weeks what used to take a team and a year. Why pay for a product when you can build your own? Why pay per seat when an agent just does the work? ...