Photo: Jac Dorsey, Block’s CEO
By Oghenekevwe Kofi
The global debate over artificial intelligence and the future of work intensified today after Jack Dorsey announced sweeping layoffs at his financial technology company, Block, in a move that signals AI is beginning to reshape corporate structures, not just workflows.
In a candid internal memo shared publicly, Dorsey revealed that Block will cut nearly half of its workforce, reducing staff from over 10,000 employees to just under 6,000. More than 4,000 workers are expected to leave or enter consultation processes as part of the restructuring.
Unlike previous waves of tech layoffs driven by economic pressures and slowing growth, Dorsey insisted Block is not in financial distress. He said the company’s gross profit is growing, its customer base expanding, and its path to profitability strengthening. The restructuring, he explained, is not crisis-driven but transformation-driven — with artificial intelligence at its core.
Dorsey said the AI tools Block is building and deploying internally are fundamentally changing how companies can operate. With advanced systems supporting operations, smaller and flatter teams can now perform tasks that once required significantly larger workforces. The traditional model of scaling through hiring is giving way to growth powered by smarter systems rather than expanded headcount.
He described the decision as a choice between gradual workforce reductions over several years or taking decisive action now. Gradual cuts, he argued, damage morale, erode trust, and distract from long-term goals. By acting in one bold step, Block aims to reset its structure around an AI-first operating model rather than continuously reacting to technological change.
The implications stretch beyond Block. Dorsey suggested a future where customers build tools and features directly on the company’s infrastructure: a model driven by automation, modular systems, and machine-assisted innovation.
Affected employees will receive severance packages that include extended salary, healthcare coverage, vested equity, and transition support.
But the broader message reverberates across industries: artificial intelligence is no longer merely a productivity tool. It is redefining what organizations need to function.
Today’s announcement reinforces a growing reality, which is AI’s impact on employment may not be gradual but structural and abrupt. For workers, businesses, and policymakers worldwide, the signal is clear: the future of work may not simply involve humans using AI, but increasingly fewer humans being required at all.
