Jack Dorsey, the CEO of Block Inc, has called for the elimination of middle managers at the company, suggesting their roles should be replaced with artificial intelligence. The proposal, which Dorsey outlined in an internal memo, marks one of the most explicit corporate visions yet for using AI to flatten management structures.
What Dorsey's proposal entails
Block Inc, the payments firm that runs Square and Cash App, currently employs thousands of people across multiple departments. Dorsey's plan would remove layers of mid-level management and instead rely on AI tools to handle tasks like performance tracking, scheduling, and decision-making. The CEO reportedly argued that AI can process information faster and more objectively than humans, leading to a more efficient organization.
He did not provide a timeline for implementation or specify how many positions would be affected. The company has not publicly commented on the memo beyond Dorsey's statement.
Middle managers at Block have historically served as the bridge between executives and frontline workers. They oversee teams, manage workflows, and handle conflict resolution. Dorsey's proposal would essentially automate those functions, potentially reshaping career paths for thousands of employees.
People familiar with the matter say the idea has already sparked internal debate. Some employees worry about job security, while others see it as a natural evolution given Block's focus on technology and automation. Dorsey has long been a vocal advocate for AI; he previously invested in AI-driven startups and integrated machine learning into Square's fraud detection systems.
Broader context of corporate AI adoption
While many companies are exploring AI to boost productivity, few have proposed eliminating entire management layers outright. Dorsey's vision for Block goes beyond routine automation — it targets core management functions that have traditionally required human judgment. Critics of such approaches argue that AI lacks the empathy and nuanced understanding needed for personnel decisions.
Still, the move reflects a growing trend. A recent survey from a consulting firm found that 40% of large companies are considering using AI for performance reviews and team coordination. Block's direct approach could set a precedent for the fintech industry, where competition often drives rapid experimentation.
For now, Dorsey's proposal remains just that — a proposal. No concrete steps have been taken, and it's unclear whether the board or senior leadership will back the plan. Employees are expected to receive more details during an upcoming all-hands meeting. Until then, the fate of Block's middle managers hangs in the balance, caught between a CEO's tech-driven vision and the reality of a human-powered workplace.
