Jack Dorsey Lays Off 40 Percent of Block Employees to Implement AI Systems

Jack Dorsey's decision to drastically cut jobs at Block (formerly Square) has sent shockwaves through the tech sector, becoming one of the most striking examples of human labor being replaced by algorithms. The company's management argues that smaller, highly specialized teams supported by artificial intelligence can operate much faster and more efficiently than extensive corporate structures. The reduction affects thousands of positions across various departments, raising concerns about the future of the job market in the face of advancing automation. The financial markets' reaction to this news was enthusiastic. Block's stock price recorded a double-digit increase, which analysts attribute to improved profitability forecasts and operational cost optimization. Dorsey emphasizes in his communications that the company is not in a financial crisis but is undergoing a fundamental business model change, which he calls a "radical reset." However, experts point to the risk of so-called AI washing, suggesting that the banner of modern technology may serve as a convenient justification for mass layoffs aimed solely at profit maximization. The trend of mass layoffs in the tech sector intensified after the COVID-19 pandemic, when many companies, such as Meta or Amazon, had to correct over-hiring from the 2020–2021 period. Block's actions may set a precedent for other public company CEOs, who are closely watching the firm's valuation increase after announcing workforce reductions. Jack Dorsey explicitly predicted that, in his opinion, other Silicon Valley companies will follow the same path, striving for maximum automation of job duties. This issue intensifies the debate over the ethical and social impacts of generative technology development, which directly threatens the job stability of mid-level personnel. „We see an opportunity to move faster with smaller, highly talented teams using AI to automate more work.” — Jack Dorsey 40% — of Block's employees will lose their jobs

Perspektywy mediów: Emphasizing the tragic social consequences of mass layoffs and the exploitation of workers by algorithms. Focusing on business efficiency, market value growth, and modern management models.