<2>Jack Dorsey’s Block Accused of ‘AI-Washing’ to Excuse Laying Off Nearly Half Its Workforce
<3>The Phenomenon of ‘AI-Washing’
Block, a company co-founded by Jack Dorsey, recently cut 4,000 jobs, nearly half its workforce. In an attempt to justify the massive layoffs, Dorsey pointed to AI as the culprit, claiming that AI tools now allow fewer employees to accomplish the same work. However, analysts see a different explanation: poor management.
<3>The Rise and Fall of Block’s Employee Base
Between 2019 and 2022, Block more than tripled its employee base, growing from 3,835 to 12,430 workers. The company’s stock had fallen 40% since early 2025, creating pressure to cut costs. This is more about the business being bloated for so long than it is about AI, Zachary Gunn, a Financial Technology Partners analyst, told Bloomberg.
<3>The AI-Washing Phenomenon
The phenomenon has earned a nickname: “AI-washing,” where companies use artificial intelligence as cover for traditional cost-cutting. Goldman Sachs economists estimate that AI is eliminating only 5,000 to 10,000 jobs