Khaberni - Weeks after he laid off about 4,000 employees, Jack Dorsey, co-founder of the leading American fintech and digital payment company "Block," envisioned a future where companies may not need middle managers.
"Block" company laid off 4,000 employees, nearly 40% of its workforce, as part of a step to restructure resources in line with developments in artificial intelligence.
In a recent blog post, Dorsey says that artificial intelligence, as it becomes a fundamental element in the workforce, is now capable of managing coordination more efficiently, allowing companies to operate at a faster pace with fewer levels of human supervision. Therefore, institutions will not need a middle management layer.
He points out that companies have long relied on multiple management levels to transfer information up and down the organizational structure, but this system may not be necessary with the emergence of artificial intelligence, requiring institutions to rethink the coordination responsibility performed by the human element.
According to Jack Dorsey, artificial intelligence can not only perform the usual tasks of middle managers, including tracking progress, understanding workflow, and coordinating among teams, but it can do so faster and on a larger scale, as reported by "India Today".
In this context, the former co-founder of the Twitter platform (formerly known as X) describes artificial intelligence as a system that maintains a "global model" of the company in real-time, capable of "maintaining a continually updated model of the entire company, and using it to coordinate work in ways that previously required humans to transfer information across various management levels".
An idea in progress
Dorsey is known not only for proposing the idea but also for actually implementing it within his company.
Earlier this year, his company "Block" announced the layoff of about 4,000 employees, nearly 40% of its workforce, as part of a step to restructure resources in line with developments in artificial intelligence.
Regarding this, Dorsey says that companies can improve productivity by abolishing permanent middle management jobs, suggesting instead that companies work with three types of contributors: individual contributors who build the systems, individuals directly responsible for solving specific problems, and "directive coaches" who contribute to the work and guide others.
He sees that artificial intelligence will take over the coordination layer traditionally managed by human managers, providing instant context for all members of the institution.
To support his viewpoint, Dorsey refers to Block's unique position in building such systems, through products like Cash App and Square, processing millions of transactions daily, which allows it to access what he calls the "economic graph," a real-time view of consumer and merchant behavior.
