Jack Dorsey, co-founder and CEO of Block Inc., reduced his company's workforce by 40% [3] to implement an AI-driven organizational strategy.
This shift represents a radical departure from traditional corporate hierarchy. By removing middle management, Dorsey aims to leverage artificial intelligence to maintain oversight of a massive staff while pursuing what he describes as excellence.
Block fired approximately 4,000 employees [1] over a three-week period [6] in February 2025 [8]. This followed an internal organizational exercise conducted in December 2025 [7]. While some reports state the number of layoffs exceeded 4,000 [2], the company's restructuring focused on cutting middle-management layers to improve efficiency [5].
Under the new model, Dorsey intends for 6,000 employees to report directly to him [5]. To manage this span of control, the company is replacing traditional managers with AI-enabled “player-coaches” [2]. Dorsey said the move is intended to utilize recent advances in AI to streamline operations.
Block, which is headquartered in San Francisco, carries a valuation of $41 billion [4]. The restructuring effort is part of a broader push to eliminate the friction caused by multi-layered management chains.
Dorsey referenced a historical lesson spanning 2,000 years [9] to justify the pursuit of a leaner, more direct reporting structure. The transition seeks to combine high-level executive visibility, and the technical capabilities of AI, to maintain productivity without the need for an extensive managerial class.
“Jack Dorsey reduced his company's workforce by 40% to implement an AI-driven organizational strategy.”
Block's restructuring serves as a high-stakes experiment in 'flat' organizational design. By replacing middle management with AI tools, Dorsey is testing whether software can replace the human elements of coordination and performance management. If successful, this could provide a blueprint for other multi-billion dollar firms to drastically reduce overhead and headcount through AI integration.
