Jack Dorsey Cuts Half of Block’s Workforce — Says AI Makes 4,000 Employees Redundant
Block CEO Jack Dorsey announced the company is shrinking from 10,000 to 6,000 employees, calling it the inevitable result of AI productivity tools. He predicted most companies will make similar cuts within a year.
This isn’t a trim. Block — the company behind Square, Cash App, and Afterpay — is eliminating 40% of its entire workforce in one move. Jack Dorsey framed it not as a crisis, but as a structural inevitability.
“A significantly smaller team, using the tools we’re building, can do more and do it better.” — Jack Dorsey
Dorsey went further, predicting that most companies will reach the same conclusion within a year and make similar structural changes. He positioned Block as an early mover, not an outlier.
Block isn’t alone. The AI layoff wave in early 2026 is accelerating across industries:
• Amazon — 16,000 jobs cut in January. CEO Andy Jassy: “We will need fewer people doing some of the jobs that are being done today.”
• Pinterest — 15% of workforce gone, citing an “AI-forward strategy”
• Dow — 4,500 jobs, explicitly citing AI and automation
• HP — 4,000-6,000 employees, expecting $1B in AI-driven savings
• CrowdStrike — 500 positions. CEO: “AI is reshaping every industry.”
• Workday — 1,750 jobs
• Chegg — 45% of workforce, citing “new realities of AI”
In total, over 22,000 AI-driven layoffs have been announced in 2026 so far. In 2025, companies attributed 55,000 job cuts to AI — 12x more than two years earlier.
But is it real? Forrester coined the term “AI-washing” for companies citing AI as justification for cuts actually driven by overhiring, financial pressure, or restructuring. A Yale Budget Lab report found AI’s actual impact on the job market “remains largely speculative.” Nearly 6 in 10 companies admitted they frame layoffs as AI-driven “because it plays better with stakeholders.”
Whether the AI replacement is real or performative, the result is the same for the people losing their jobs. And Dorsey’s prediction that this becomes the norm within 12 months should concern everyone in a white-collar role.