She became part of Block to work on AI projects. Just a few weeks after, AI led to her losing her position.

Block’s AI-Driven Layoffs Highlight Tech Industry Uncertainty

The recent wave of layoffs at Block, driven by advancements in artificial intelligence, underscores the vulnerability of even the most forward-thinking positions in the technology sector. The rapid pace of change continues to reshape the landscape for those shaping tomorrow’s innovations.

Massive Workforce Reduction at Block

Jack Dorsey, the CEO and founder of Block—the parent company behind Square and Cash App—revealed on Thursday that the company will be letting go of over 4,000 employees, representing about 40% of its staff. This move will bring the workforce down from more than 10,000 to just under 6,000 as part of a major organizational overhaul. Dorsey attributed these job cuts directly to increased efficiency resulting from Block’s adoption of AI technologies, as reported by Fortune.

“The intelligence tools we’re developing and utilizing, combined with leaner teams, are transforming the way companies are built and managed,” Dorsey explained in a post on X.

Market Reaction and Analyst Insights

The announcement, which came just before Block’s earnings release, led to a surge of over 20% in the company’s stock price during after-hours trading. Morningstar Senior Equity Analyst Brett Horn noted in a Thursday report that Block’s fourth-quarter performance showed significant acceleration, and management’s projections for 2026 anticipate substantial margin improvements as the company streamlines its workforce. Horn continues to value the company at $83 per share.

However, Horn also warned, “The long-term effects of drastically reducing staff and relying on AI for productivity gains remain uncertain.”

Personal Impact: Debbie O’Brien’s Story

One of those affected by the layoffs is Debbie O’Brien, a senior developer relations engineer specializing in Applied AI at Block and based in Mallorca, Spain. She had only recently joined the company to support developers in integrating AI workflows using agents and the Model Context Protocol. According to her personal website, O’Brien brings over 15 years of frontend development experience, has more than 20,000 LinkedIn followers, and 10,000 YouTube subscribers. Fortune reached out to her for comment but did not receive a response before publication.

In a frank YouTube video shared on Friday, O’Brien recounted how she first learned—indirectly—that she might be among those laid off. During a training session, a manager abruptly ended the call and told everyone to check their email. While colleagues began sharing in Slack that they had been let go, O’Brien initially only saw Dorsey’s general announcement and not a personal notification.

She described the uncertainty that followed: “I didn’t know if I still had a job or not.” It wasn’t until around 12:30 a.m. that she discovered the official termination paperwork via DocuSign, outlining the next steps for returning company equipment. “At least then I could sleep, because I finally knew I no longer had a job,” she reflected.

Working on the Cutting Edge

O’Brien had been contributing to Goose, Block’s open-source AI agent framework built around the Model Context Protocol. Her team was at the forefront of innovation, rapidly developing automation tools—from generating release notes and videos in minutes to enabling users to order food through ChatGPT, all powered by Block’s payment infrastructure.

Reflections on Job Security in Tech

O’Brien refrained from criticizing Dorsey or Block’s leadership, instead characterizing the decision as a binary choice about risk and survival—a dilemma she believes other companies may soon face as well.

She spoke candidly about the broader implications: “The future in tech is unpredictable.” After experiencing consecutive layoffs—first at Microsoft and now at Block—she no longer views technology roles, even in high-demand areas like AI, as inherently secure. Her practical advice: manage your finances carefully, minimize fixed expenses such as housing, and be prepared for ongoing instability.

This article was originally published on Fortune.com