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Someone asked us to help them post about Jack Dorsey announcing layoffs at Block. Here's what came back.
I want to post about Jack Dorsey announcing layoffs at Block. It's interesting because he's framing it around AI, not cost cutting.
Jack Dorsey just made a fascinating move at Block. They're cutting thousands of jobs, but not because business is struggling. Gross profit is growing, customer base is expanding, profitability is improving. His reasoning: "The intelligence tools we're creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company." This might be the first time we're seeing a CEO explicitly frame layoffs around AI capability rather than economic necessity. If he's right about this being the new normal, we're looking at a very different conversation about workforce planning.
Jack Dorsey's latest shareholder letter caught my attention for what it doesn't say as much as what it does. Block is cutting thousands of jobs, but Dorsey is clear this isn't about financial trouble. Revenue is growing, customer base is expanding, profitability is improving. Instead, he's saying AI tools and smaller teams are "fundamentally changing what it means to build and run a company." It's a remarkable shift in messaging. Since 2022, we've seen wave after wave of tech layoffs justified by "economic headwinds" or "overhiring during the pandemic." Dorsey might be the first CEO to explicitly tie workforce reductions to AI capabilities rather than market conditions. The question is whether this is genuine strategic foresight or a more palatable way to explain difficult decisions. Either way, if other companies start adopting this framing, the conversation around AI and employment is about to get much more direct.
Jack Dorsey just said something that every CEO is probably thinking but hasn't said out loud yet. In Block's latest shareholder letter, he announced thousands of job cuts. But unlike the parade of "tough economic conditions" explanations we've heard since 2022, Dorsey was unusually direct about the real driver. This isn't about financial distress. Block's gross profit is growing, they're serving more customers, and profitability is improving. The reason? "The intelligence tools we're creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company. And that's accelerating rapidly." This might be the canary in the coal mine moment. We've watched major tech companies shed hundreds of thousands of jobs over the past two years, almost always framed around market conditions or pandemic overcorrection. But what if those were just the socially acceptable explanations? What if the real story was always about AI making certain roles redundant, and companies just weren't ready to say it publicly? If Dorsey is right, and other companies start being this honest about AI-driven restructuring, we're about to have a very different conversation about the future of work. The question isn't whether AI will change how companies operate - it's whether leaders will be transparent about what that actually means for their workforce.
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