Jack Dorsey just cut nearly 1/2 of Blocks, from 10,000 to 6,000 people.
His reason is not financial trouble. Gross profit is growing and the customer base too.
He said it plainly: AI-powered tools paired with smaller, flatter teams are "fundamentally changing what it means to build and run a company."
A few things stood out to me:
๐He chose one hard cut over gradual reductions. His reasoning: repeated rounds of cuts destroy morale, focus, and trust more than a single honest action.
๐He's not hiding behind performance. Most layoff announcements are wrapped in corporate language. This one is not.
For developers and engineers, this is a signal! Many CEOs are thinking about the same thing, but not saying it out loud yet.
For entry-level and junior professionals, things are getting even tougher. Anthropic's CEO warned that AI could wipe out 50% of entry-level lawyers, consultants, and finance professionals within the next few months.
This is the new normal for tech companies.
Have a great week,
Aymen