Jack Dorsey lays off 4,000 employees, says AI behind decision

New Delhi (The Uttam Hindu): Twitter (now X) co-founder Jack Dorsey has announced plans to reduce his company’s workforce by about 40 percent, citing rapid changes driven by artificial intelligence. The total number of employees will be reduced from around 10,000 to 6,000, with nearly 4,000 employees being shifted to consulting-based roles or asked to leave. Affected employees will receive a compensation package that includes 20 weeks of pay, additional pay based on years of service, equity vesting through May, six months of healthcare coverage, company devices, and 5,000 dollars in transition assistance.

In a post on X (formerly Twitter), Dorsey said the decision was not due to weak business performance, noting that profits and customer numbers continue to grow. He explained that advances in artificial intelligence and the rise of smaller, more efficient teams are changing how companies operate. According to him, a single large round of layoffs is better than repeated job cuts, which can harm employee morale and reduce confidence among customers and investors.

The move reflects a broader trend in the technology sector, where companies are restructuring to adapt to artificial intelligence. Oracle Corporation is reportedly planning major job cuts to expand artificial intelligence data center capacity, while Amazon has also announced layoffs linked to AI restructuring. A report by PwC India estimates that artificial intelligence could contribute about 550 billion dollars to India’s economy by 2035 across sectors including agriculture, education, energy, healthcare and manufacturing.