Synopsis
In a blog post titled ‘From Hierarchy to Intelligence’, co-written with Sequoia Capital partner Roelof Botha, he explains how AI could replace multiple management layers that usually coordinate work across teams.‘AI can take over middle management’
In a blog post titled ‘From Hierarchy to Intelligence’, co-written with Sequoia Capital partner Roelof Botha, he explains how AI could replace multiple management layers that usually coordinate work across teams.
AI, Dorsey argues, can handle coordination tasks that humans typically perform by moving information up and down organisational chains. During downturns, companies have often trimmed their middle management layer to reduce costs and speed up decisions.
“At Block, we're questioning the underlying assumption: that organizations have to be hierarchically organized with humans as the coordination mechanism. Instead, we intend to replace what the hierarchy does,” the blog said.
The blog explained that while most companies use AI as a copilot to slightly improve existing workflows, Block is aiming for something far more ambitious: to be a company designed around intelligence itself, or a “mini-AGI.”
“For the first time, a system can maintain a continuously updated model of an entire business and use it to coordinate work in ways that previously required humans relaying information through layers of management,” Dorsey and Botha wrote.
Three types of roles
Per the approach outlined, Block’s internal structure would change significantly. Employees would be grouped under three main roles instead of traditional reporting hierarchies.
The first is the individual contributor (IC), described as a “deep specialist”, who are experts in a specific layer of the system. They receive directions from the AI model rather than a manager, enabling faster and more independent decisions.
The second is the directly responsible individual (DRI). They have ownership of specific cross-functional problems spanning multiple teams and have full permission to pull resources from the model.
Finally, there are player-coaches, who replace managers. These employees focus on "craft and people," that is, they both build products and develop talent.
Block layoffs
The post follows Block’s announcement in February that it would cut around 4,000 jobs, framing the move as part of a broader shift towards an AI-driven future of work.
“I don’t think we’re early to this realization,” Dorsey, the cofounder and chairman of Block, said at the time. “I think most companies are late. Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes. I’d rather get there honestly and on our own terms than be forced into it reactively.”
The layoffs have sparked debate about whether AI is genuinely reshaping work or being used to justify cost-cutting, according to Bloomberg. Some critics have warned of “AI washing”, where companies frame workforce reductions as part of technological transformation rather than financial necessity.
