"This is more about the business being bloated for so long than it is about AI. Block more than tripled its employee base between 2019 and 2022, growing from 3,835 to 12,430 workers. The company's stock had fallen 40% since early 2025, creating pressure to cut costs."
"The phenomenon has earned a nickname: "AI-washing," where companies use artificial intelligence as cover for traditional cost-cutting. Goldman Sachs economists estimate that AI is eliminating only 5,000 to 10,000 jobs per month across all U.S. sectors, hardly enough to justify Block's massive cuts."
Block Inc. eliminated 4,000 jobs, nearly half its workforce, with co-founder Jack Dorsey attributing the cuts to AI capabilities. However, analysts dispute this explanation, pointing instead to poor management decisions. The company tripled its workforce from 3,835 to 12,430 employees between 2019 and 2022, becoming bloated. With stock prices falling 40% since early 2025, cost-cutting pressure mounted. This practice, termed "AI-washing," uses artificial intelligence as justification for traditional layoffs. Goldman Sachs estimates AI eliminates only 5,000 to 10,000 U.S. jobs monthly across all sectors, insufficient to justify Block's massive reduction. Despite the questionable rationale, Wall Street responded positively, with Block's stock rising 15% following the announcement.
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