Block's Jack Dorsey wants nimble and quick. He thinks AI will do the trick.

"The core thesis is simple. Intelligence tools have changed what it means to build and run a company. We're not making this decision because we're in trouble. our business is strong. Engineer output is now up 40% thanks to AI capabilities that have significantly improved. Rather than managing slow reductions, Dorsey chose immediate action: 'i'd rather take a hard, clear action now and build from a position we believe in than manage a slow reduction of people toward the same outcome.'"

"A data analyst who survived three previous layoff rounds discovered he was losing his job while interviewing a candidate for a Block position. He observed AI automating his work responsibilities, which directly led to his termination. This experience exemplifies how AI is replacing specific job functions across the organization."

Block CEO Jack Dorsey announced the elimination of over 4,000 positions, reducing the company's workforce from 10,000 to approximately 6,000 employees. Despite Block's strong financial performance, Dorsey attributed the drastic reduction to transformative changes in how companies operate due to artificial intelligence. The company experienced significant AI capability improvements, resulting in a 40% increase in engineer output. Rather than implementing gradual layoffs, Dorsey chose immediate, decisive action. Block continues recruiting senior AI engineering talent. Affected employees reported witnessing AI automation replacing their roles. Dorsey anticipates other CEOs will implement similar workforce reductions as AI capabilities continue advancing.

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