"Intelligence tools we're creating and using, paired with smaller and flatter teams, are enabling a new way of working. I don't think we're early to this realisation. I think most companies are late."
"We're starting to see projects that used to take big teams now be accomplished by a single, very talented person. 2026 is expected to be the year that AI dramatically changes the way we work."
"Most tech companies today are using AI tools that automatically write the computer code required to operate software or websites, like Claude Code from Anthropic or Codex from OpenAI."
Block, led by Jack Dorsey, is reducing its workforce from 10,000 to under 6,000 employees, attributing the layoffs to AI fundamentally changing how companies operate. Intelligence tools paired with smaller, flatter teams enable new working methods. This marks the first time Block has explicitly cited AI for redundancies. Major tech companies including Amazon, Meta, Microsoft, and Google have similarly cut jobs while increasing AI investments. Tech firms increasingly use AI tools like Claude Code and Codex to automate software development. Some analysts question whether executives exaggerate immediate job threats to appear forward-thinking. Dorsey believes most companies are late to recognizing AI's impact. Despite layoffs, Block reported strong financial results and increased profits.
#ai-driven-workforce-reduction #tech-industry-layoffs #artificial-intelligence-automation #corporate-restructuring
Read at www.bbc.com
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