Block Inc. (SQ), led by Jack Dorsey, announced plans to cut approximately 4,000 jobs (roughly 25% of its workforce) as part of a major restructuring focused on AI and bitcoin $BTC infrastructure.
The layoffs target non-core functions to redirect resources toward AI-driven products and bitcoin-related initiatives (e.g., expanding Bitcoin mining and self-custody wallets).
Dorsey framed the move as necessary for long-term competitiveness in fintech and crypto.
Market reaction: Block shares initially dipped but recovered slightly on hopes of improved efficiency.
Controversy – “AI Washing” Accusations:
Some analysts and employees accuse Block of AI washing — using the AI buzzword to justify mass layoffs while the actual AI impact on operations remains unclear or limited.
Critics point out that many cut roles (e.g., marketing, support, and admin) have little direct connection to AI development.
Skeptics argue the “AI pivot” narrative is partly a PR strategy to align with current market hype around artificial intelligence, similar to other tech firms.
The article highlights growing scrutiny of companies invoking AI as a reason for workforce reductions amid broader tech industry layoffs.
