Jack Dorseys Block lays off nearly half of workforce due to AI
Source: Mashable Tech
Layoffs Overview
Jack Dorsey’s Block, the fintech company behind Square and Cash App, is laying off nearly half of its workforce. Dorsey announced the cuts on X, citing AI as the primary driver.
“Today we’re making one of the hardest decisions in the history of our company: we’re reducing our organization by nearly half, from over 10,000 people to just under 6,000,” he wrote.
Reasoning
The layoffs follow a strong quarter for Block, with revenue, profit, and customer base all growing. Dorsey argues that the rise of AI makes a swift, decisive cut preferable to a prolonged, gradual reduction.
“I’d rather take a hard, clear action now and build from a position we believe in than manage a slow reduction of people toward the same outcome,” he added.
He noted that newer intelligence tools, combined with smaller, flatter teams, are reshaping how companies operate.
“Something has changed. We’re already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company, and that’s accelerating rapidly.”
Compensation for Laid‑off Employees
Employees affected by the layoffs will receive:
- Salary for 20 weeks plus one additional week for each year of tenure
- Six months of health‑care coverage
- A $5,000 cash severance payment
- Other benefits (unspecified)
Industry Context
Dorsey’s stance echoes comments from other tech leaders:
- Anthropic’s Boris Cherny claimed that “coding is largely solved.”
- Elon Musk has warned that AI will “replace all jobs.”
A widely shared thought exercise by Citrin Research predicts an economic collapse by 2028 due to AI displacing workers.
Market Reaction
Following the announcement, Block’s shares rose by nearly 30 % in extended trading.