AI
Block Blames AI for Job Loss
Alloy Newsletter:
Insights into the intersection of AI, Law, and Business.
I'm sure you have heard by now of Block's announcement this week: Block is reducing headcount by 40% (4,000 jobs impacted). Jack Dorsey, in his employee tweet, excused the layoff as necessary because of AI efficiency gains.
I'm just not buying it.
Block rapidly scaled from 3,900 employees in 2019 to rumored highs of 14,000 in 2023. They made a lot of bets on a lot of different businesses and products. It didn't pan out, and they overstaffed and underperformed. Their stock has cratered in the past 5 year.
This new trend to "AI-wash" poor management hurts the true message of AI: Yes, AI will replace tasks...but the use of AI should dramatically and positively impact companies and employees. We are heading to more abundance, not scarcity.
Imagine if your employee's use of AI caused your tech company to have no technology backlog? You'd be hiring like crazy!
