Jack Dorsey Lays Off 40 Percent of Block's Workforce, Betting on Artificial Intelligence

The American technology sector is facing an unprecedented event, which many analysts are calling the first wave of mass layoffs directly caused by progress in the field of algorithms. Block, formerly known as Square, has decided to lay off approximately 4,000 employees, representing nearly 40 percent of its current staff. Jack Dorsey, leading the company, argues this radical step is necessary for a transformation towards smaller, more efficient teams that will benefit from automation offered by artificial intelligence. Since 2022, the tech industry has been grappling with a wave of restructuring, but previous reductions were mainly explained as a post-COVID-19 pandemic correction and rising labor costs, not the direct replacement of people by software.The situation at Block is unusual in that the company is in good financial health, generating profits and recording stable growth. Traditionally, restructuring has been associated with attempts to save failing entities, but in this case, Dorsey treats the layoffs as an opportunity for faster development. The capital market reacted euphorically to this news, which is interpreted as a signal for other managers in Silicon Valley. Investors are clearly rewarding companies that decide to optimize costs through modern technologies at the expense of human resources. „We see an opportunity to move faster with smaller, highly talented teams using AI to automate more work” — Jack Dorsey However, critics and trade unions are raising a warning voice about a phenomenon called "AI washing," suggesting that companies may use the automation trend as a convenient smokescreen for aggressive cost-cutting and short-term profit maximization. Speculation suggests that other market players may follow Block's example, heralding deep changes in the labor market in the digital services sector. The discussion is now shifting to the grounds of business ethics and corporate social responsibility in the era of the fourth industrial revolution. Workforce Reduction at Block: Before layoffs: 10000, Planned layoffs: 4000, After restructuring: 6000 20% — increase in Block's stock price after announcing employee dismissals

Perspektywy mediów: Highlights the threat of mass technological unemployment and the cynicism of management using AI for layoffs despite profits. Emphasizes the necessity of innovation, increased company efficiency, and the positive stock market reaction to structural modernization.