The co-founder of Twitter and head of Block (formerly Square) cut the company from 10,000 to 6,000 employees — in a single day, without months-long layoff rounds. In his view, small teams with AI tools accomplish more than large ones without them.
A few details from his letter to employees:
— This isn't a crisis measure. Block's gross profit grew 24%, and shares jumped 25% in after-hours trading. Investors weren't exactly upset.
— Laid-off employees received 20 weeks of salary plus one week per year of tenure, six months of health insurance, and $5,000 for transition.
— At the same time, mandatory daily AI usage was introduced for all remaining staff. Not a recommendation — a requirement tied to performance reviews.
"AI tool capabilities are growing faster every week," Dorsey wrote.
Looks like it's begun.