Jack Dorsey Says Block Not 'Replacing Folks With AI' In Letter Explaining 900+ Job Cuts
Fintech Block Inc recently announced layoffs affecting 8% of its workforce. CEO Jack Dorsey addressed employees in a letter explaining the reasons behind the job cuts, emphasizing that roles were not being replaced by artificial intelligence. Dorsey highlighted strategy, performance, and hierarchy as the main areas of focus for the reorganization. The company is currently undergoing consultation processes in countries where required. Employees with poor performance were reportedly among those let go.
XYZ is the latest company to announce a series of layoffs with 931 people, or around 8% of the company laid off in the latest round. Company co-founder and CEO Jack Dorsey sent a letter to employees on the latest news. Here's what Dorsey had to say.
Job Cuts and Reasons
Dorsey laid out the facts and reasons why the job cuts were happening, while also ensuring employees that jobs were not being replaced by artificial intelligence. He mentioned that the cuts were part of organizational changes, including roles being eliminated and consultations starting in required countries.
Dorsey outlined the three main areas in his letter: strategy, performance, and hierarchy. The letter explained why certain teams were being reduced and how employees with poor performance were being let go. The job cuts were distributed as follows:
- Strategy: 391 people
- Performance: 460 people
- Hierarchy: 80 managers
Block is also closing the majority of its 748 job openings, retaining only key leadership and critical operational roles. Dorsey emphasized that the cuts were not made to hit financial targets, replace employees with AI, or change the headcount cap but were specific to the company's needs around strategy, performance, and organization efficiency.
Reasoning Behind the Cuts
Dorsey mentioned that the large number of job cuts was a result of the company being behind in its actions and the need to move faster to keep up with the industry transformation. He expressed that his job is to increase the company's value and believes that the restructuring will help the company focus and execute better.
Dorsey acknowledged that the job cuts were the toughest part of his job and encouraged direct feedback from employees on areas where the company could improve. He expressed gratitude to the departing employees for their contributions, stating that their work had built the company to its current point.
Previous Layoffs and Stock Performance
Block previously cut around 1,000 jobs in January 2024. By the end of 2024, the company had approximately 11,300 employees. The company's stock is down 1.6% to $60.32 on Wednesday with a year-to-date decrease of 29% in 2025.
While Dorsey likely never intended for the letter to be made public, it sheds light on the rationale behind the cuts and the company's efforts to catch up in certain areas where it may be lagging.