Twitter cofounder Jack Dorsey breaks down his thought process when he laid off 40% of … – Fortune

While some tech leaders shy away from admitting their job cuts are related to AI, Block CEO Jack Dorsey pointed to the advanced tech in cutting 40% of his staffers. Dorsey, who also founded Bluesky and Twitter (acquired by Elon Musk and renamed to X), is pulling back the curtain on a major layoff decision that hit a tipping point last December. At the end of 2025, Dorsey and fellow Block leaders headed home for the holidays and tinkered with AI tools. And straight away, they recognized models like Anthropic’s Opus 4.6 and OpenAI’s Codex 5.3 were more powerful than before; reconvening with his team after the break, they agreed the company would not look the same, or be the same size, moving forward in the era of AI. “We just did this exercise of, ‘Okay, so what is the minimal number of people that we would need to keep the service up 100%?’” Dorsey said recently on Sequoia Capital’s Long Strange Trip podcast. “Next, ‘What is the minimal number of people that we would need to be to fully be in compliance with our regulators?’” he continued. “Then third, ‘What is the minimal set of folks that we need
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