In a dramatic shift from conventional practices in tech layoffs, CEO Jack Dorsey announced on Thursday that he will lay off nearly half of Block’s workforce, reducing the total number of employees from over 10,000 to just under 6,000. This decision comes despite the company’s strong performance and growing profits, setting it apart from the series of layoffs that many tech companies have executed in recent years.
Dorsey articulated his reasoning in a post on X, stating that repeated layoffs can be detrimental to morale, focus, and the trust of both customers and shareholders. He emphasized his preference for implementing significant cuts all at once rather than managing a gradual reduction of staff, which could lead to what he termed “layoff fatigue and chronic anxiety.”
Studies by management experts support Dorsey’s approach, with Georgetown University professor Brooks Holtom explaining that single mass layoffs can mitigate the negative impacts on productivity and morale often associated with piecemeal reductions. While the scale of Block’s layoffs is indeed substantial, Holtom noted that the severance packages offered are relatively generous. Laid-off employees will receive 20 weeks of base pay, an additional week for each year of service, continued vesting of their equity through the end of May, and six months of health coverage. Furthermore, they will retain their corporate devices and receive a $5,000 bonus.
This bold move signifies a departure from the pattern typically observed among major tech firms, raising questions about whether this approach will influence other organizations. Jessica Verrilli, managing director at Adverb Ventures, suggested that this trend could lead to a wider industry ripple effect, prompting companies to rethink employee ownership structures as workforce sizes decrease.
Dorsey also highlighted that the changing tech landscape is prompting shifts in operational models. He referenced the ongoing integration of intelligence tools paired with smaller, more agile teams as a catalyst for a new way of working, fundamentally altering how companies operate. During a subsequent earnings call, Dorsey predicted that many firms would soon adopt AI technologies to enhance efficiency.
The announcement of the layoffs follows a viral report from research firm Citrini earlier in the year, which raised concerns regarding the adverse effects of AI on the economy and triggered a decline in stock prices. Numerous tech leaders have echoed concerns about the sustainability of white-collar jobs in the face of evolving technological capabilities. Anthropic CEO Dario Amodei warned of a potential “bloodbath” for white-collar roles, while Meta CEO Mark Zuckerberg anticipated sweeping changes to individual employee productivity due to AI.
In contrast, not everyone is ready to declare the end of traditional desk jobs. The World Economic Forum’s 2026 Global Risk report indicates that while 92 million workers may be displaced by 2030, a projected 170 million new roles could emerge during the same period, suggesting a potential net increase in employment opportunities.
The future remains uncertain for many white-collar workers as the tech industry adapts to rapid changes, leaving both employees and industry observers on high alert regarding the evolving employment landscape.
