After Layoffs, Block CEO Says AI Now Runs Company Hierarchy

Following a massive restructuring that saw 4,000 employees—nearly 40% of the workforce—laid off at Block Inc. in early 2026, CEO Jack Dorsey has unveiled a radical vision for the future of corporate structure. 

In a blog post co-authored with Sequoia Capital’s Roelof Botha titled “From Hierarchy to Intelligence,” Dorsey argues that traditional middle management has become obsolete in the age of Artificial Intelligence.

The Death of the “Information Routing Protocol”

Jack posits that middle management historically served as a human “information routing protocol” to bridge communication gaps in large organizations. 

However, at Block, which operates as a remote-first entity, work produces digital artifacts that are inherently machine-readable. 

Jack suggests that AI can now maintain a continuously updated “world model” of an entire business, coordinating tasks and tracking progress more efficiently than human layers.

“There is no need for a permanent middle management layer,” the post asserts. 

Instead of the traditional pyramid, Jack proposes a leaner model where AI manages coordination, allowing small, high-performing teams to focus entirely on product and customers.

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The Three-Role Reorganization

To replace the traditional hierarchy, Block is transitioning toward three distinct AI-enabled roles:

• Individual Contributors: Deep specialists who receive context and direction directly from AI models.
• Directly Responsible Individuals (DRIs): Problem-solvers who lead cross-functional projects and pull resources from the AI system.
• Player-Coaches: Leaders who contribute technically while mentoring talent, replacing the purely administrative managerial layer.

Strategic Bet or Narrative Pivot?

While the announcement led to a 20% surge in Block’s stock price, critics suggest the AI-first narrative may be masking a correction for pandemic-era over-hiring and a cooling crypto market. 

Jack, however, maintains that this is a fundamental shift in organizational design. 

He predicts that most companies are “late” to the realization that a team of 100 people equipped with “mini-AGI” tools can now outperform a workforce of 1,000.

As Block moves from “AI as a tool” to “AI as the core intelligence,” the tech industry is watching closely. 

The experiment marks a bold, if controversial, attempt to redefine how modern corporations operate without the centuries-old human chain of command.

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