In recent weeks, the tech world has been abuzz with AI “jobpocalypse” warnings. Microsoft AI chief Mustafa Suleyman warned that white-collar workers have a year to 18 months before they face widespread job displacement. Former presidential candidate Andrew Yang and JPMorgan Chase CEO Jamie Dimon concurred.
These threats have caused many professional workers’ stomachs to churn as they fear for their heads. Now, Jack Dorsey’s payments firm, Block, has made a move that vindicates some of the fears of the AI doomers.
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.
Dorsey didn’t mince words in an X post announcing the cuts, tying the layoffs directly to an efficiency boost from the company’s AI implementation. “We’re already seeing that 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,” he wrote.
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.
“I think most companies are late. Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes,” he wrote in a separate letter to shareholders.
While Dorsey noted the layoffs were in part a reaction to overhiring during COVID, they follow AI-driven doomsday anxiety among workers and investors alike: Citrini Research’s “Global Intelligence Crisis” Substack post imagined a scenario in 2028 where unemployment tops 10% and the S&P 500 tanks.
And yet, as an Oxford Economics report released in January found, many layoffs that CEOs called AI-related were actually the result of past overhiring.
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.”
