The Guardian Business EN

Current and former Block workers say AI can’t do their jobs after Jack Dorsey’s mass layoffs: ‘You can’t really AI that’

The CEO said he cut the company’s workforce by 4,000 people – almost in half – because of gains in AI productivityMark remembers the first time he wondered whether he was teaching Block’s AI tools how to do his job – and maybe even replace him. He was at his fintech company’s extravagant anniversary party last September. As executives led a presentation on the productivity benefits of a new internal AI tool, Mark, who worked in the product department, discussed his worries with colleagues. While he wasn’t sure what would happen in a few years, he told a co-worker sitting next to him that for now, there was no way the technology was so advanced that it could move the business forward without employees like him to help drive vision and strategy.These AI tools were not proactive. He had to tell them what to do. Block still needed him, he thought. Continue reading...

Mar 08, 2026 &03000808202631; 12:00 UTC www.theguardian.com Trending 3/5

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Negative for markets

Sentiment score: -65/100

High impact Medium-term (weeks)

WHAT THIS MEANS

Block CEO Jack Dorsey cut workforce by 4,000 employees (nearly 50%) citing AI productivity gains, but current and former workers dispute the capability, stating AI cannot independently perform complex strategic and vision-driven roles requiring human judgment and direction.

AI CONFIDENCE

85% Very high

SENTIMENT GAUGE

NEWS POWER SCORE

AFFECTED ASSETS

↓

Block (Square)

SQStock

Expected to decline

Mass layoffs of 4,000 employees create operational risk, potential service disruption, and talent loss; market may question sustainability of AI-driven cost-cutting strategy

⇅

S&P 500

^GSPCIndex

High volatility expected

Broader fintech and tech sector sentiment affected by concerns over aggressive AI-driven workforce reduction without proven productivity gains

PRICE HISTORY

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⚡ SUGGESTED ACTION

Short-term bearish signal on Block (SQ): Consider reducing exposure or establishing short positions. The disconnect between management's AI justification and employee reality suggests overestimated productivity gains, creating downside risk for earnings and operational execution in coming quarters.

KEY SIGNALS

Aggressive workforce reduction (50%) based on unproven AI capabilitiesEmployee testimony contradicts management's AI productivity claimsAI tools lack autonomy and require human direction and strategic oversightPotential service quality and innovation risks from talent exodusCredibility gap between executive narrative and operational reality

SECTORS INVOLVED

Financial TechnologySoftware & ServicesTechnology

Analysis generated on Mar 09, 2026 at 16:40 UTC

Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by The Guardian Business. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

Current and former Block workers say AI can’t do their jobs after Jack Dorsey’s mass layoffs: ‘You can’t really AI that’

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