Recent Gallup data shows that more Americans are using AI at work and in their daily lives. As AI has grown quickly in recent years, many people are starting to worry. Some believe it could bring the biggest changes to jobs since the Great Depression in the 1930s.
During that time, unemployment reached 25 percent. In response, New Deal programs such as the National Industrial Recovery Act reshaped the labor market. They led to major workplace reforms, stronger labor unions, and new government job programs.
Today, people continue to debate whether AI is hurting entry-level tech jobs. There are concerns here and there, but so far no major tech company has completely restructured its workforce because of AI. That changed when Jack Dorsey’s company, Block (formerly Square), announced plans to lay off 40% employees from its 10,000-person workforce in order to focus more on AI.
Announcing his decision, Block CEO Jack Dorsey pointed to AI’s ability to improve efficiency with fewer workers. “Intelligence tools have changed what it means to build and run a company,” he wrote in a letter to shareholders. Dorsey also shared the decision publicly and informed employees directly.
I had two options: cut gradually over months or years as this shift plays out, or be honest about where we are and act on it now. I chose the latter. Repeated rounds of cuts are destructive to morale, to focus, and to the trust that customers and shareholders place in our ability to lead.
– Jack Dorsey, CEO Block (source: Fast Company)
In a BBC article about Dorsey’s decision, technology reporters Lucy Hooker and Kali Hays explain that as companies double down on AI, they are reshaping both their budgets and their workforce plans. Amazon, for example, is reportedly cutting costs in other parts of the business to free up money for AI investments. This growing focus on automation has raised concerns that AI could replace tasks traditionally handled by skilled professionals, potentially disrupting the job market. At the same time, tech leaders such as Meta CEO Mark Zuckerberg argue that AI will boost efficiency and help smaller teams accomplish work that once required much larger staffs.
Dorsey told Fast Company the company would not “just disappear people from Slack and email and pretend they were never here.” He added that he planned to host a live video session to personally thank employees for their work. “I know doing it this way might feel awkward,” he wrote. “I’d rather it feel awkward and human than efficient and cold.”
Acknowledgement: This summary was generated using AI writing tools as part of my AI Explorations process. For more information, please refer to the original articles listed below.