tech
February 28, 2026
Jack Dorsey made the loudest case yet that AI is already replacing jobs
In cutting nearly 40% of its workforce, Block loudly professed that the days of AI taking the jobs of humans has arrived.
TL;DR
- Block is laying off about 40% of its workforce, a reduction from over 10,000 to under 6,000 employees.
- CEO Jack Dorsey attributes the layoffs to the fundamental changes brought about by AI 'intelligence tools' in running a company.
- The move was met with a positive stock reaction, with shares up significantly post-announcement.
- Analysts from Morgan Stanley, Goldman Sachs, and Wells Fargo view the cuts favorably, expecting improved profitability and productivity.
- Block anticipates restructuring costs between $450 million and $500 million, with most cuts completed by mid-year.
- Dorsey chose to conduct the cuts all at once to preserve morale and trust.
- This decision comes amidst a broader industry debate about AI's impact on jobs.
- The company aims for higher gross profit per employee, quadrupling the pre-Covid figure.
- Skeptics point to Block's significant hiring during the pandemic as a factor, with the current headcount returning to 2020 levels.
- Autodesk's CEO also commented on using AI for engineering efficiency and hiring less.
Continue reading the original article