BBS:      TELESC.NET.BR
Assunto:  Dorsey replaces 40% of workers with AI
De:       Mike Powell
Data:     Sat, 28 Feb 2026 10:57:14 -0500
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'We see an opportunity to move faster with smaller, highly talented teams using
AI to automate more work': Block decimates workforce in favor of AI

By Craig Hale published yesterday

Block announces extreme AI-induced layoffs

    Jack Dorsey says smaller teams and AI are more efficient than human-only
teams
    4,000 workers risk losing their jobs, around 40% of the company's headcount
    Dorsey sees AI boosting company speed and agility

Block has set out plans to cut more than 4,000 jobs, marking a near-40%
reduction from around 10,000 workers (per its most recent quarterly report) to
under 6,000 employees.

Company CEO and Twitter co-founder Jack Dorsey explained the drastic decision
doesn't come as an alarmed response to financial struggles, but rather an
acknowledgment that AI tools could significantly boost efficiency, reducing the
number of workers it needs.

And this much is clear - the company posted a healthy 24% year-over-year
growth in gross profit.

Jack Dorsey replaces 40% of workers with AI

Dorsey also reportedly decided to make one big cut, rather than announce
multiple rounds of layoffs, in a 'one and done' approach rather than continuous
blows to worker morale. Though the 40% reduction certainly hasn't gone
unnoticed.

Block expects to incur around $450-500 million in costs associated with the
restructuring, with severance packages including at least 20 weeks' pay, a
$5,000 payment and more.

As for the company restructuring itself, Block is going all-in on agentic AI.
"A significantly smaller team, using the tools we're building, can do more and
do it better," Dorsey wrote in a letter to workers and shareholders.

Dorsey explained that "intelligence will be at the core of how the entire
company works," from making decisions and managing risk to building products
and serving customers. He also noted AI's impact on company speed in his
letter, suggesting that slimmer teams and speedier AI systems could boost
agility.

Removing unnecessary layers of management will certainly help with that, and
it's a move that's already been taken by the likes of Amazon, Google and
Microsoft.

Company shares rose as much as 26% in after-hours trading before dipping
slightly, though they're still down considerably from early- and mid-2021
highs.


https://www.techradar.com/pro/we-see-an-opportunity-to-move-faster-with-smaller
-highly-talented-teams-using-ai-to-automate-more-work-block-decimates-workforce
-in-favor-of-ai

$$
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 * Origin: Capitol City Online (1:2320/105)

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