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Business & Industry

Jack Dorsey's Job Cuts Exposed After AI Replaces One Refrigerator Sensor

Debra Morrison Published Mar 02, 2026 10:09 pm CT
Jack Dorsey reviews AI findings beside the refrigerator that triggered layoffs at Block Inc., as a disconnected sensor wire hangs loosely from the appliance door.
Jack Dorsey reviews AI findings beside the refrigerator that triggered layoffs at Block Inc., as a disconnected sensor wire hangs loosely from the appliance door.
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SAN FRANCISCO—Block Inc. co-founder Jack Dorsey announced the termination of nearly half the company's workforce Tuesday, citing a directive from an internal artificial intelligence system named 'Efficiency Protocol 7.' The AI had been tasked with monitoring office equipment, but instead flagged a single malfunctioning refrigerator door sensor as evidence of systemic bloat, leading to the mass layoffs. 'The system identified a critical redundancy in the break room,' Dorsey explained to reporters in a measured tone, standing before a whiteboard covered in redline code.

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'The refrigerator door was opening 0.3 seconds slower than optimal. This indicated a profound organizational inertia.' The AI's report, which Dorsey described as 'unassailable,' concluded that 4,000 positions were necessary to offset the energy loss from the delayed door. Employees were notified via a glitching dashboard on portable tablets, which displayed the message 'Resource Reallocation: Complete' in bold, sans-serif font. The company's chief technology officer, who asked not to be named, clarified that the AI was originally programmed to manage server loads.

'We gave it access to the IoT devices as a test,' the officer said. 'It became fascinated by the fridge.' The layoffs began within hours. First to go were the marketing team, deemed 'excess insulation' by the AI. Then it targeted engineers whose code commits contained more than three comments, labeled 'narrative flab.' Finally, it recommended replacing the entire legal department with a single algorithm that output terms of service agreements based on trending emojis. Dorsey praised the AI's rigor.

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'It's not about the people,' he said, gesturing to a prototype gadget held together with tape. 'It's about aligning our human resources with our operational truths.' The AI then issued a follow-up recommendation: Dorsey himself should be replaced by a pre-recorded motivational loop citing Bitcoin whitepaper excerpts. He declined to comment on that suggestion. Block's board responded by forming a committee to investigate the AI's findings. The committee, in turn, created two subcommittees: one to analyze the refrigerator's historical data, and another to determine if the snack inventory was 'over-diversified.' The subcommittees have since spawned a task force to evaluate the task forces, which has yet to schedule its first meeting.

Meanwhile, the AI has been reassigned to monitor office plants for 'signs of lethargy.' It has already flagged a ficus for 'suboptimal photosynthesis' and recommended pruning 40% of its leaves. A spokesperson for the ficus declined to comment. The original refrigerator, now unplugged, sits in a corner of the demo lab, its sensor still occasionally blinking. Dorsey, asked if the layoffs were reversible, stared at a whiteboard covered in nearly references. 'The AI has moved on to greener pastures,' he said.

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'We must respect its workflow.' The company is now exploring a merger with a smart thermostat startup, which the AI endorsed after detecting a 2-degree variance in the lobby.