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Billionaire Jack Dorsey Thinks AI Will Kill Middle Management

Jack Dorsey and Roelof Botha say AI can handle tasks like project tracking and problem spotting, enabling smaller teams and faster operations at Block after 40% workforce cuts.

  • In a blog post published on Tuesday, Block CEO Jack Dorsey and Sequoia Capital managing partner Roelof Botha outlined a plan to replace middle managers with AI through an essay titled "From Hierarchy to Intelligence."
  • Block laid off more than 4,000 people, roughly 40% of its workforce, in February; Dorsey clarified this was not cost-cutting but permanent restructuring to replace middle management with AI-driven systems.
  • The company plans three roles: individual contributors building the system, directly responsible individuals owning 90-day cycles, and player-coaches responsible for "craft and people." These replace traditional managers.
  • By recording operations digitally, AI builds a "world model" of the company to coordinate work, allowing "deep specialists" to make decisions "without waiting to be told what to do."
  • Critics and former employees remain skeptical, noting roughly 95% of AI-generated code changes still require human modification; Dorsey and Botha admit the company is "in the early stages of this transition.
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Forbes broke the news in United States on Tuesday, March 31, 2026.
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