Jack Dorsey: AI to Replace Middle Management After Block Layoffs

• Jack Dorsey and Roelof Botha proposed a new organizational model where artificial intelligence replaces traditional middle management roles.
• This vision follows a massive workforce reduction in February when Block cut approximately 4,000 employees, or 40% of its staff.
• The proposed structure shifts human roles into three categories: individual contributors, directly responsible individuals, and player-coaches.

A New Vision for Corporate Hierarchy

Block co-founder Jack Dorsey and lead independent director Roelof Botha have outlined a future where AI serves as the primary coordination mechanism for businesses. In a recent blog post, the leaders argued that traditional hierarchical structures, where information flows through layers of human managers, are becoming obsolete. Instead, AI can monitor project progress, identify bottlenecks, assign tasks, and distribute critical data more efficiently than humans.

According to Dorsey, Block is currently in the early stages of this transition. The goal is to move away from a model where humans act as the coordination layer and toward a system organized as an "intelligence." This shift aims to eliminate the delays often caused by middle management, allowing for a real-time understanding of product performance and resource allocation.

Reorganizing the Human Workforce

While AI will handle the logistical and administrative tasks of management, humans will focus on execution and high-level decision-making. Under the new model, employees will occupy one of three roles:

• Individual contributors: Workers who build and maintain the company's operating systems.
• Directly responsible individuals: Staff members assigned to solve specific problems with the freedom to utilize any necessary resources.
• Player-coaches: Professionals who provide mentorship and support while continuing to engage in technical work, such as writing code.

Dorsey and Botha emphasized that humans remain essential for making ethical decisions and steering the core business strategy. The "player-coach" role ensures that even those with leadership responsibilities stay grounded in the actual building process.

Efficiency and the AI-Driven Pivot

The shift toward an AI-integrated workplace follows significant turmoil at Block. In February, the company eliminated 4,000 positions as part of an AI-driven pivot designed to maintain competitiveness. Although some staff members were reportedly brought back in March, the overarching strategy remains focused on automation.

Dorsey argues that for a remote-first company, work is already machine-readable, making it easier for AI to maintain a continuous picture of what is being built and where resources are needed. By removing the layers of middle management that impede information flow, the company believes it can operate with significantly greater speed and agility.