The Block founder announced Thursday the company would be laying off nearly half its workforce, cutting 4,000 employees, down to just under 6,000 workers from over 10,000.
Block’s layoffs mark one of the most significant and bold AI-driven workforce reductions yet in S&P 500 history.
Dorsey added that his company isn’t alone in reaching its conclusion on AI and predicted that others will follow.
Still, some experts warn that Block’s layoffs could trigger the reality depicted in Citrini’s viral post, setting in motion a chain reaction of layoffs across the professional landscape.
“Whereas the job market effects of AI in 2025 were still quite ambiguous, AI capabilities have advanced rapidly in the past few months,” Anton Korinek, an economist who focuses on the economic impact of transformative AI, told Fortune. “This may be the beginning of a new trend where white-collar jobs become threatened more seriously by AI. Once a few companies start the trend, competitive forces may induce others to follow suit.”
Dorsey also said the company’s customer base is expanding and profitability is improving, which he attributed to AI implementation.
The stock market has reacted positively to the decision. Block was up nearly 18% on Friday as investors bet on productivity gains from AI.
Dorsey said the layoffs come in anticipation of an ensuing trend, allowing the company to act proactively: “I’d rather get there honestly and on our own terms than be forced into it reactively.”
