Jack Dorsey says AI should replace the middle manager after Block cuts 4,000 jobs

Dorsey's plan strips out middle management, with AI handling coordination, product decisions, and internal alignment.

What to know:

• Jack Dorsey argues that his company's decision to cut approximately 4,000 of its more than 10,000 employees was not a cost reduction but a permanent restructuring to replace middle managers with AI.
• Dorsey previously said the restructuring was triggered by a capability shift he observed in December in tools including Anthropic’s Opus 4.6 and OpenAI’s Codex 5.3, which he said was now capable of operating effectively in large codebases.
• Corporate hierarchy, has always existed to solve one problem: routing information through organizations too large for any single person to oversee, something that AI is now addressing, Dorsey argues.

In Jack Dorsey's view of the world, the job most at risk from the AI revolution is the middle manager.

Dorsey argues in a new essay, "From Hierarchy to Intelligence," published with Roelof Botha, Sequoia Capital's managing partner, an investor in Block, that his company's decision to cut approximately 4,000 of its more than 10,000 employees was not a cost reduction but a permanent restructuring to replace middle managers with AI.

Corporate hierarchy, the essay argues, has always existed to solve one problem: routing information through organizations too large for any single person to oversee.

Managers aggregate context from below, act as messengers from above, and maintain alignment across teams. AI can now perform those functions continuously and at scale, the authors argue, making the messenger redundant.

In place of management layers, Dorsey and Botha proposes two AI-driven "world models."

One aggregates internal data from code, decisions, workflows, and performance metrics to create a continuously updated picture of company operations, replacing the context that managers traditionally carried.

The other maps customer and merchant behavior using transaction data from Cash App and Square.

Those models feed what Block calls an “intelligence layer” that composes financial products dynamically to fit market demand.

If done properly, the models absorb the coordination work that previously justified the existence of middle management.

Rather than building from fixed roadmaps, the essay proposes breaking Block’s business into modular capabilities, including payments, lending, card issuance and payroll.

When the system identifies a need, the essay’s example is a merchant facing a seasonal cash flow gap, it assembles a solution from existing capabilities. When it cannot, the missing capability defines what gets built next, replacing the product roadmap with a system-generated backlog.

The organizational structure is reduced accordingly. Block plans to operate with three roles: individual contributors who build the system, directly responsible individuals who own specific outcomes on 90-day cycles, and player-coaches who remain hands-on while developing people.

Dorsey told Wired in early Marchthe restructuring was triggered by a capability shift he observed in December in tools including Anthropic’s Opus 4.6 and OpenAI’s Codex 5.3, which he said was now capable of operating effectively in large codebases.

But current and former Block employees told the Guardian that roughly 95% of AI-generated code changes still require human modification, and that AI tools cannot yet lead in regulated areas like banking and money transfers.

More For You

Most crypto privacy models weaken as blockchain data grows. Encryption-based models like Zcash strengthen. CoinDesk Research maps the five privacy approaches and examines the widening gap.

Why it matters:

As blockchain adoption scales, the metadata available to machine learning models scales with it. Obfuscation-based privacy approaches are structurally degrading as a result. This report provides a comprehensive comparison of all five major crypto privacy architectures and a framework for evaluating which models remain durable as AI capabilities improve.

Higit pang Para sa Iyo

The move comes as the chain distances itself from Optimism technology and toward in-house infrastructure as it seeks greater independence and scale.

Ano ang dapat malaman:

• Base said it will focus on expanding tokenized asset markets, scaling stablecoin payments and growing its developer ecosystem as institutional interest in onchain finance rises.
• The Ethereum layer-2, introduced in 2023, is moving away from Optimism’s tech stack toward in-house infrastructure as it seeks greater independence and scale.

Grayscale’s research head says tokenization will happen in waves and explains how to play it

14 minutes ago

Brazil's B3 exchange to offer bitcoin-linked 'event contracts' for the ultra-rich

37 minutes ago

Smart money is hedging bitcoin more aggressively than ether :Crypto Daybook Americas

46 minuto ang nakalipas

Crypto rebounds as oil dips on Trump comments, but derivatives signal weak conviction

1 oras ang nakalipas

Bitcoin ETFs post first monthly inflows since October as price stabilizes

1 oras ang nakalipas

Uniswap Foundation held $85.8M at year-end, committed $26M in grants during 2025

2 oras ang nakalipas

Bitcoin’s old price peaks aren’t sacred – and the parabolic era may be over

2 oras ang nakalipas

Some quantum-resistant tokens jump 50% as Google flags risks to Bitcoin security

6 oras ang nakalipas

Hong Kong hasn’t issued a single HKD stablecoin license after March target

8 oras ang nakalipas

Charles Hoskinson not a fan of CLARITY Act, warns of 'weaponization' by future lawmakers

19 oras ang nakalipas

Strategy's STRC keeps dividend payout steady at 11.5% after seven straight increases

3 oras ang nakalipas

These catalysts could bump bitcoin as Trump hands three-week target to end Iran war

6 oras ang nakalipas