Dorsey claims that it’s better to do one big cut as “repeated rounds of cuts are destructive to morale.” On that point, he’s right. A Careerminds study shows that serial layoffs are bad for morale and employee health. That said, big cuts can also be dumb cuts. Look no farther than X to see a shining example of how Elon Musk fired a bunch of people, only to then hire them back. And transformative change is hard, requiring new processes, cultural norms, tech integration and go-to-market strategies. It’s why leaders like BD’s Tom Polen argue Lean practices are a prerequisite for AI. Block is a company that also mines bitcoin, has had serial layoffs, and spent $68 million five months ago to fly everyone in for an “in-person company event” with Jay-Z. Raise your hand if you think Dorsey has this all figured out.
He said that every job will be affected by the technology immediately—and it’s on workers to ensure their future success by keeping up with the program.
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