Recently, I paid attention to a quite interesting move from Block – this company just announced cutting more than 4,000 jobs, accounting for about 40% of its workforce. The surprising part is that their revenue increased by approximately $220 million compared to the previous quarter, yet Jack Dorsey still decided to take this step.

The reason Dorsey gave is very straightforward: AI has fundamentally changed the way companies are built and operated. He believes that within the next year, most other corporations will realize the same thing and make similar structural changes. After this announcement, Block’s stock rose about 24% – a sign that the market highly values this decision.

Block is currently one of the largest companies supporting Bitcoin. They integrated Bitcoin payments into Square and Cash App, operate Bitkey – a self-custody Bitcoin hardware wallet – and even develop their own Bitcoin mining machines. Dorsey has been rumored to be Satoshi Nakamoto, although he has repeatedly denied it.

But Block is not the only case. Amazon laid off 16,000 employees in January, with the CFO stating it was to cut costs while increasing investment in AI. Pinterest also announced a 15% reduction in its workforce to reallocate resources toward AI-focused products. Salesforce, Klarna, Accenture – all are following this trend.

Interestingly, Dorsey admits that Block is not leading this awareness. He believes most companies are lagging behind. In fact, Spotify has announced that their top developers will fully utilize AI to design software starting from 2026.

There is an interesting contradiction here: revenue is increasing while employees are decreasing. This suggests that AI is not only replacing jobs but also helping companies operate more efficiently at lower costs. Dorsey also admits that Block hired too many during the COVID period, built two separate company structures instead of one, and this layoff is to correct that mistake.

If this trend continues to accelerate as Dorsey predicts, we are about to witness a large-scale restructuring across the entire tech industry. The question is not whether AI will replace jobs, but when that will happen.