Jack Dorsey Advocates AI Replacement of Middle Management Amid Block's Major Restructuring

Jack Dorsey, co-founder of Block, has proposed that artificial intelligence should replace middle management roles within the company. This comes after Block announced the reduction of approximately 4,000 positions, representing a significant portion of its workforce. In an essay titled 'From Hierarchy to Intelligence,' co-authored with Roelof Botha of Sequoia Capital, Dorsey outlines a vision for restructuring Block's operations using AI-driven 'world models.' These models aim to aggregate internal data and map customer behavior, creating an 'intelligence layer' that dynamically composes financial products to meet market demand. The essay suggests that AI can perform the functions of middle managers more efficiently, reducing the need for traditional management layers. Block's new organizational structure will focus on three key roles: individual contributors, directly responsible individuals, and player-coaches. Dorsey cited advancements in AI tools like Anthropic’s Opus 4.6 and OpenAI’s Codex 5.3 as catalysts for this shift. However, current and former employees note that AI-generated code changes still require significant human oversight, particularly in regulated areas such as banking and money transfers.