Block is undergoing a significant restructuring to integrate AI into its operations, aimed at reducing its workforce and redefining employee roles.

CEO Jack Dorsey, along with Sequoia partner Roelof Botha, announced in a blog post this week that Block plans to eliminate traditional middle management layers in favor of an AI-driven system that will coordinate employees, who will be designated as specialists, or "player-coaches."

The shift comes after Dorsey cited artificial intelligence advances as a contributing factor in over 4,000 Block employee layoffs in February.