Jack Dorsey, CEO of Block, announced layoffs of 4,200 employees, over 40% of the workforce, while framing it as an AI-driven transition. However, this contrasts with the company’s operational inefficiencies and over-hiring, particularly during COVID. Wall Street reacted positively to the layoffs, ignoring deeper management issues that AI cannot resolve. The memo’s narrative suggests that AI is transforming work, yet it masks problems stemming from past decisions and poor management practices. Block’s inefficiency, highlighted by lower per-employee operating income compared to peers, emphasizes that AI won’t fix fundamental issues. These layoffs reflect a broader trend in Silicon Valley where companies blame technology for management failures.
https://om.co/2026/02/28/block-tackle-job-cuts-the-ai-narrative/