How Jack Dorsey Described the Decision to Reduce Block’s Workforce by Nearly Fifty Percent

Jack Dorsey Predicts Widespread Layoffs Amid AI Transformation

Jack Dorsey, chairman and co-founder of Block, has announced a bold move: the company will let go of over 4,000 employees, representing 40% of its workforce. This decision is rooted in his belief that artificial intelligence can effectively replace many roles, reshaping how businesses operate.

Dorsey shared his reasoning behind the layoffs, emphasizing that Block’s financial health is not the issue. Instead, he argues that organizations must become leaner and adopt flatter hierarchies to remain competitive in an era dominated by AI.

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Not Just About Saving Money

Dorsey insists that the layoffs are not a cost-cutting measure. Block, which owns Square and Cash App, remains financially robust. He believes that AI has fundamentally changed how companies are built and managed, allowing smaller teams to accomplish more with advanced tools.

He noted that Block is already experiencing these improvements internally, and the capabilities of AI tools are accelerating rapidly.

Speed Is Crucial

For companies undergoing restructuring, maintaining employee morale and minimizing disruption is a major concern. In a memo to Block staff posted on X, Dorsey explained he had two choices: gradually reduce staff over time or take immediate action. He chose the latter, arguing that repeated layoffs erode trust, focus, and morale among employees, customers, and shareholders.

Industry-Wide Changes Ahead

Dorsey foresees similar mass layoffs across other companies, urging workers to prepare for widespread changes. He told analysts that most organizations will soon reach the same conclusion and restructure accordingly, suggesting that Block is not ahead of the curve, but rather that others are lagging behind.

Impact on Customers

The effects of these layoffs will extend beyond Block’s workforce. Dorsey explained that customers will also notice changes, as AI tools will enable them to create their own features using Block’s platform.

Taking Risks for Progress

Dorsey acknowledged that such a drastic reduction in staff could temporarily affect Block’s ability to serve customers. However, he remains confident, stating that making bold decisions is risky, but so is remaining stagnant.

Review and Responsibility

Block has carefully evaluated which roles are essential for its future growth, testing these decisions from various perspectives. Dorsey made it clear that he stands by his choice and takes full responsibility for it.

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