3 questions every CEO needs to ask about the AI jobs doom loom in the wake of Jack Dorsey’s dramatic 40% layoffs at Block

Fortune

by Diane Brady

March 4, 2026

AI-Generated Deep Dive Summary

Last week’s announcement by Block CEO Jack Dorsey of a 40% workforce reduction shook the tech world and reignited debates about AI’s role in job displacement. The move, which affected a healthy, growing company, prompted questions about whether AI is being used as a tool to enhance efficiency or as a cover for layoffs. Dorsey attributed the decision to the need for smarter, more efficient ways of working, citing AI-driven tools as a key factor. However, critics argue that such drastic cuts raise ethical concerns and may harm long-term company health. The article highlights how Dorsey’s approach reflects broader trends in corporate leadership. While he framed the layoffs as a necessary step toward future growth, experts like Stephen Miles praise his boldness and self-belief. Miles argues that Dorsey’s strategy is not ruthless but rather a brutally honest assessment of what’s best for Block’s long-term success. However, the decision has sparked criticism from those who question whether AI should be used to justify mass layoffs. The article also points out that serial layoffs can damage employee morale and may lead to counterproductive outcomes, as seen in cases like Elon Musk’s infamous “fire-and-hire” tactics at X. The discussion extends to broader business strategies in the age of AI. While some companies opt for large-scale layoffs, others prefer smaller, more gradual cuts to avoid disrupting workflows and damaging employee trust. Block’s decision has also raised questions about how AI is reshaping traditional business models. According to ServiceNow CEO Bill McDerm

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Originally published on Fortune on 3/4/2026