In a rare admission from a tech leader, Jack Dorsey, CEO, Block, has revealed that artificial intelligence (AI) played a central role in Block Inc.’s decision to cut nearly 40 per cent of its workforce. The move impacted over 4,000 employees and followed internal experiments with advanced AI tools.
The turning point came late last year when leadership tested systems such as Anthropic’s Opus model and solutions from OpenAI. These trials demonstrated that many functions could be handled with significantly fewer people. The exercise prompted executives to assess the minimum workforce required to maintain operations, meet regulatory standards, and sustain growth.
Rather than delaying the decision, Dorsey chose to act early. The layoffs were executed swiftly, reducing the company’s headcount from around 10,000 to nearly 6,000 within weeks. Leadership framed the move as a proactive step to prepare for a future shaped by AI, while attempting to manage the transition with clarity and support for affected employees.
The restructuring also signals a deeper shift. Alongside investor Roelof Botha, Dorsey highlighted how AI is flattening traditional organisational structures and redefining how teams operate. While acknowledging that initial projections were not perfect, the company retained some flexibility to adjust staffing as needed.
The development comes as AI continues to reshape industries beyond technology.
