Jack Dorsey Proves AI Job Cut Fears Are True; Ellisons Win Warner

Jack Dorsey has been many things in his career, including social media pioneer and crypto advocate. Now he’s the grim reaper of AI. Dorsey on Thursday revealed he will lay off 40% of the employees, or about 4,000 people, at his fintech firm, Block. The reason? AI. “The core thesis is simple,” he explained in a shareholder letter. “Intelligence tools have changed what it means to build and run a company.” 

Now, Dorsey, a former CEO of Twitter, has never been known for his management skills. It’s possible Block is overstaffed and Dorsey is using AI as an excuse to cut. But even if that’s true, the reaction is what will matter. Dorsey’s statement will confirm the worst fears of AI’s critics. It’s sure to fuel the growing political debate about the benefits and costs of AI in ways that might rebound on the tech sector, particularly when it comes to getting permission to build new data centers. After all, communities across the country are already rebelling against proposed data centers, unhappy about rising power costs and the environmental impact. The best way to destroy public support for AI is for companies to use it primarily to slash jobs. Dorsey says that’s coming: “Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes.”