Jack Dorsey Defends Block's AI-Driven Layoffs, but Former Exec Cites Other Factors

An ex-Block employee argues the company's downsizing was more about 'organizational bloat' than AI automation.

Published on Mar. 5, 2026

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Jack Dorsey, the CEO of Block (formerly Square), recently announced major layoffs at the fintech company, citing rapid advancements in AI technology as the primary reason. However, a former Block executive has disputed Dorsey's claims, arguing that the layoffs were more likely due to the company's organizational bloat rather than AI automation. The ex-employee, Aaron Zamost, suggests that Dorsey has a history of making big bets based on early signals and may be using AI as a 'convenient and flashy new cover' for typical corporate downsizing.

Why it matters

Dorsey's announcement has fueled ongoing fears about the impact of AI automation on white-collar jobs, a major economic disruption that workers are increasingly concerned about. However, the former Block employee's perspective suggests that the company's layoffs may not be solely driven by AI, raising questions about the real reasons behind the downsizing and the potential overstatement of AI's current capabilities.

The details

Zamost, who was the head of communications at Square (now Block) from 2015 to 2020, argued in an essay published by the New York Times that there are likely a variety of factors at play beyond AI, including the company's history of major hiring sprees and prior rounds of layoffs in 2024 and 2025. He also pointed to specific cuts, such as shrinking the policy team and eliminating diversity and inclusion roles, as evidence that the layoffs were more about 'standard prioritization and cost management' rather than an 'AI-driven reinvention.' Zamost also questioned the effectiveness of AI models, citing issues such as 'useless email summaries, antisemitic chatbots, and AI overviews that can't get even basic facts right.'

  • In late February 2026, Jack Dorsey announced that Block was reducing its organization by nearly half.
  • Between the end of 2019 and the end of 2023, Block's headcount ballooned from 4,000 to almost 13,000 employees.

The players

Jack Dorsey

The CEO of Block (formerly Square) and the co-founder of Twitter.

Aaron Zamost

The former head of communications at Square (now Block) from 2015 to 2020.

Block Inc.

A fintech company founded by Jack Dorsey, formerly known as Square.

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What they’re saying

“Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes.”

— Jack Dorsey, CEO of Block (Wall Street Journal)

“The question on minds everywhere: Is AI a terrifying new reality in which the work they do might no longer be viable? Or is Block's announcement just a convenient and flashy new cover for typical corporate downsizing?”

— Aaron Zamost, Former head of communications at Square (now Block) (New York Times)

“This isn't an AI story. It's organizational bloat wearing an AI costume.”

— Jason Karsh, Former Block employee (Twitter)

The takeaway

Dorsey's claims about AI driving Block's major layoffs have been met with skepticism, with a former executive arguing that the downsizing is more likely due to the company's organizational bloat and prior history of hiring sprees and layoffs. This raises questions about the real reasons behind the job cuts and whether Dorsey is overstating the current capabilities of AI technology.