Block Employees Reject AI Justification for Mass Layoffs
In a stark revelation, current and former workers at Block, the fintech giant, are disputing CEO Jack Dorsey's assertion that artificial intelligence can replace human roles after he cut nearly half the company's workforce. The layoffs, affecting roughly 4,000 employees, were attributed by Dorsey to gains in AI productivity, but insiders argue the technology is not yet advanced enough to justify such drastic cuts.
Workers Voice Skepticism Over AI Capabilities
Mark, a former product department employee, recalled his initial doubts at a company anniversary party last September, where AI tools were promoted for productivity benefits. He emphasized that these tools lack proactivity, requiring human direction, and stated, "You can't really AI that," highlighting that an employee encompasses more than a series of tasks. This sentiment is echoed by seven current and recently laid-off workers who spoke anonymously, fearing job repercussions.
They contend that Block's AI tools, while helpful, cannot replicate human judgment, vision, and strategy. George, a current employee, suggested the layoffs were a strategic move to win back investor confidence after stock declines linked to cryptocurrency investments. He described it as "posturing for the market," noting a stock jump post-announcement.
Dorsey's Defense and AI Adoption Push
In a recent Wired interview, Dorsey defended the cuts, citing a shift in AI sophistication in December with tools like Anthropic's Opus 4.6 and OpenAI's Codex 5.3. He denied over-hiring during the pandemic and criticized company hierarchies, aiming for Block to feel like a "mini AGI." However, workers report that over the past nine months, AI usage shifted from encouragement to a requirement, with employees pressured to train tools that could automate their roles.
John, a current employee involved in AI implementation, noted that while AI speeds up engineering, human oversight remains crucial. He revealed that 95% of AI-driven code changes need human tweaks, and all changes require approval. The company monitors AI usage closely, tying it to performance evaluations, leading to what John calls "AI fatigue" among staff.
Ethical and Business Concerns Emerge
Beyond employee displacement, Block's AI expansion raises business risks. George highlighted customer frustration with chatbots making errors, such as advising account closures. Workers like Carl oppose AI on ethical grounds, citing environmental harm from datacenters, while Oliver pointed out AI's inability to handle regulated areas like banking effectively.
Naoko Takeda, a former Cash App data scientist, expressed "immense dread" post-layoffs, criticizing the forced AI adoption as dystopian and noting limited productivity gains. Remaining employees face increased workloads and low morale, with internal Slack reactions reflecting widespread discontent.
As AI adoption accelerates in the U.S., with Goldman Sachs warning of job losses, Block's case underscores the tension between technological advancement and human labor, challenging the narrative that AI can seamlessly replace skilled workers at scale.
