Jack Dorsey's Company Is Laying Off 4,000 White-Collar Workers, Replaced by AI
Jack Dorsey's fintech company Block has announced a major workforce reduction, cutting nearly 40% of its employees—around 4,000 roles—to streamline operations and transition toward a flatter, AI-centric organizational structure. Despite reporting growing revenue and profitability, and even raising its 2026 profit guidance to $12.2 billion, Block is proactively restructuring to adapt to rapid AI-driven changes in productivity.
Dorsey emphasized that AI tools are fundamentally reshaping how companies operate, enabling exponential growth without proportional increases in staff. This move reflects a broader trend among tech firms like Salesforce, Amazon, and ASML, which have also cut jobs during growth phases by leveraging AI for efficiency.
Notably, Block’s stock surged 20% following the announcement, adding nearly $6 billion in market value—effectively valuing each eliminated role at about $1.5 million in created enterprise value. The layoffs primarily affect white-collar roles, as AI excels at tasks involving information processing—a core function of many knowledge-economy jobs.
Affected employees will receive severance including 20 weeks' base pay, additional compensation per year served, a $5,000 transition bonus, and six months of continued health insurance. The situation underscores how AI is disrupting traditional employment faster than expected, shifting focus toward reskilling and adaptation in the automated economy.
Odaily星球日报02/27 03:55
