Jack Dorsey has announced one of the biggest tech layoffs in recent years — and it could signal how companies act in the AI era.
In a memo posted on X, Jack Dorsey said he will cut nearly half of the workforce at Block. The company has more than 10,000 employees, and the move will reduce that number to just under 6,000.
Dorsey said the business is still strong and profitable. But he argued that repeated rounds of layoffs hurt morale and create long-term anxiety. Instead of smaller cuts over time, he chose what he called one “hard, clear action.”
Laid-off employees will receive 20 weeks of base pay, plus an extra week for each year worked. Their stock awards will continue vesting through May, and they will get six months of health coverage. The company will also let them keep their work devices and provide a $5,000 payment.
The decision comes as more companies look to artificial intelligence to boost efficiency. Dorsey said new AI tools allow smaller and flatter teams to do more work. He suggested that this shift is changing what it means to build and run a company.
Other tech leaders have made similar warnings. Dario Amodei has said AI could disrupt white-collar jobs, while Mark Zuckerberg has spoken about how AI is reshaping employee productivity. At the same time, some firms are already shrinking their workforces as automation improves.
Still, not everyone believes white-collar jobs are disappearing for good. The World Economic Forum has predicted that while millions of roles may be lost by 2030, even more new jobs could be created.
Block’s shares jumped more than 20% in after-hours trading after the news. But for many workers, the message is clear: as AI grows, job security in tech may look very different in the years ahead.
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