The CEO of Block and co-founder of Twitter, Jack Dorsey, is laying off 4000 out of its 10,000 workforce and warned that other tech companies would soon follow suit.
Dorsey announced this in his annual letter to Block shareholders recently.
The lay-off is in relation to the fast-growing capabilities of Artificial Intelligence (AI) tools, which are making it easier for a smaller workforce to achieve greater results.
He said: “Intelligent tools have changed what it means to build and run a company. We’re already seeing it internally. A significantly smaller team using the tools we’re building can do more and do it better. And intelligence tool capabilities are compounding faster every week.
“I think most companies are late (to this realization, including Block). Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes. I’d rather get there honestly and on our own terms than be forced into it reactively.”
The broad, AI-driven layoffs reinforce a common fear for workers as the tools gain more capabilities and executives get a better sense of how to use them. The worries are growing even more intense as software engineering products like Claude Code and OpenAI’s Codex are already automating code-writing across the tech industry.
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