AI over humans? Block lays off 40% of staff, CEO Jack Dorsey says still hiring AI engineers

Block, the company behind Square, Cash App and Afterpay, led by CEO Jack Dorsey, has slashed nearly 40 per cent of its workforce, accounting for nearly half in a single round of layoffs. The company is laying off more than 4,000 people, dropping the workforce from over 10,000 employees to just under 6,000.

The letter shared by co-founder Jack Dorsey to shareholders highlights the reason for layoffs: “intelligence tools.” Based on the move, Dorsey thinks most companies will follow a similar pattern in the near future.

The cutoffs come at a time when artificial intelligence is transforming roles across the technology industry, fuelling broader concerns about the future of employment. Over the past year, major companies such as Amazon, Meta, Microsoft, and Verizon have also announced significant workforce cuts linked in part to AI-driven shifts.

“A significantly smaller team, using the tools we’re building, can do more and do it better. And intelligence tool capabilities are compounding faster every week,” Dorsey wrote in a post on his social media platform.

Meanwhile, Block’s Chief Financial Officer, Amrita Ahuja, addressed the strategy directly in the company’s financial outlook, saying there is an opportunity to operate more efficiently with smaller, highly skilled teams by automating more tasks through AI.

Jack Dorsey thinks he’s ahead of the game

In the post, Jack Dorsey also insisted the layoffs were not due to financial trouble, emphasising that the company remains strong and continues to see growth in gross profit. He also believes that he’s ahead of the game.

“I think most companies are late. Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes. I’d rather get there honestly and on our own terms than be forced into it reactively,” he wrote.

Dorsey stated on X that he chose to remain genuine about the position of the company and act now, rather than “cut gradually over months or years.” Dorsey added that all the affected employees will have severance for 20 weeks or more based on their tenure, equity vested until the end of May and six months of health care, along with any corporate devices, as well as an extra $5,000.

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