Jack Dorsey Bets 4,000 Jobs That AI Can Replace The Org Chart

Block cut over 4,000 employees on Feb 27, 2026, shrinking headcount from above 10,000 to under 6,000.

CEO Jack Dorsey linked the layoffs to AI in a shareholder letter and co-published an essay arguing AI can replace hierarchy.

Sequoia and other VCs promoted the AI-native organizational thesis while some analysts and studies said many AI layoffs corrected prior overhiring.