Block CEO Jack Dorsey announced plans Thursday to cut over 4,000 jobs—nearly half the workforce—to weave AI deep into operations. “Intelligence tools have changed what it means to build and run a company. A significantly smaller team using the tools can do more and do it better,” he stated bluntly.
Dorsey jabbed at rivals: “I don’t think we’re early… most companies are late.” Shares jumped Friday, rewarding the bold pivot. He added, “I’d rather get there honestly… than be forced into it reactively.”
This fuels a fierce clash – Does AI supercharge workers or shrink headcounts?
Why Is Dorsey Slashing Block’s Workforce Now?
AI tools already boost internal output, per Dorsey. Block (XYZ.N) eyes overhaul for fintech edge. Unlike vague efficiency plays, he names AI as prime driver. Global AI layoffs top 61,000 since November—Amazon, Pinterest, Wisetech included. Reuters tallied them.
What Do Markets and Experts Say About AI Cuts?
Block stock soared, betting on AI as core shift. Citrini Research warns of 10.2% US unemployment by 2028 from software, logistics hits. Brian Jacobsen of Annex Wealth calls AI a “scapegoat” for overhiring fixes. Michael Ashley Schulman frets lost “human intuition” for Block’s spark.
How Are Other Leaders Reacting to AI Job Shifts?
Morgan Stanley tracks rising AI wins: 21% of S&P 500 firms cite gains, up from 10% in 2024 Q4. Profit margins lift 40 basis points this year. ECB’s Christine Lagarde sees productivity now, no redundancy waves yet. JPMorgan’s Jamie Dimon predicts jobs vanish but rebound. Bank of America economists flag 25% job risk, yet net economy gain.
Will AI Job Cuts Keep Accelerating?
Dorsey leads the charge; peers guarded till now. Investors uneasy amid global slowdown. Software index lags S&P 500 in 2026. Debate rages—tool for all or few?
Key AI Layoff Data
- Block cuts: Over 4,000 (nearly 50% workforce)
- Global total: 61,000+ since Nov (Amazon, Pinterest, etc.)
- S&P 500 AI mentions: 21% report benefits (Q4 2025)
- Forecast: 10.2% US unemployment by 2028 (Citrini)
FAQs
Q: How many jobs is Block cutting for AI?
A: Over 4,000, nearly half the workforce, to embed AI operations-wide.
Q: What did Dorsey say about other companies?
A: “Most companies are late” to AI realization; smaller teams outperform.
Q: How many global AI-linked layoffs since November?
A: More than 61,000, per Reuters, including Amazon and Pinterest.
Q: What’s Morgan Stanley’s AI profit view?
A: 40 basis points margin boost this year; 21% S&P firms see gains.
Q: Does ECB see AI job waves yet?
A: Productivity up, but no major redundancies; watching closely.
Disclaimer: This information is based on inputs from news agency reports. TSG does not independently confirm the information provided by the relevant sources.
