Jack Dorsey says AI should replace the middle manager after Block (XYZ) cuts 4,000 jobs
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By Sam Reynolds
Published on April 1, 2026.
Jack Dorsey, founder of Sequoia Capital, has argued that the most at risk from the AI revolution is the middle manager. In an essay "From Hierarchy to Intelligence," he and Roelof Botha suggest that the decision to cut approximately 4,000 of Block's employees is a permanent restructuring to replace middle managers with AI. The essay suggests that in place of management layers, two AI-driven "world models" combine internal data from code, decisions, workflows, and performance metrics to create an updated picture of company operations, replacing the context managers traditionally hold. The article suggests that Block’s business should be broken into modular capabilities such as payments, lending, card issuance and payroll. However, current and former Block employees argue that 95% of AI-generated code changes still require human modification.
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