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Jack Dorsey just laid off 40% of staff. He said he’s still hiring AI engineers.

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Jack Dorsey said he’s still hiring for his fintech company Block — even after he just laid off 40% of its workforce.

The cofounder said during an earnings call on Thursday that he expects to bring in more senior AI engineering talent to the team. The company’s stock was up nearly 23% after trading hours as of 7 p.m. Eastern Time.

On Thursday, Dorsey said in a memo to employees that Block was cutting its head count from 10,000 people to “just under 6,000.” The reason, he said, was because AI is unlocking “a new way of working” with “smaller and flatter teams.”

“We’re not making this decision because we’re in trouble. Our business is strong. Gross profit continues to grow, we continue to serve more and more customers, and profitability is improving,” Dorsey wrote in the memo. “But something has changed.”

Dorsey said in an earnings call on Thursday that AI tools have increased productivity at the company with a 40% increase in production code shipment per engineer since September.

“We’ve seen engineering work that would have taken weeks to complete be done by a small team in a fraction of the time with agentic coding tools,” he said.

Despite the layoffs, Dorsey said during the call that Block expects to invest in hiring.

“We see meaningful opportunity to invest in our people and invest in hiring, invest in retaining a world-class team to deliver for our customers; ultimately, we expect to hire some more senior AI engineering talent who will continue to level up our engineering and product capabilities,” he said.

Dorsey and a spokesperson for Block did not immediately respond to a request for comment.

AI’s impact is being felt across industries and roles, as companies find ways to automate work. One study by Stanford University researchers found that early-career positions in fields such as software engineering and customer service are on the decline.

Some workers have also said that their responsibilities have increased with AI. A software engineer told Business Insider that the simultaneous increase in productivity and workload is leading to “AI fatigue.”




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Read the memo: Talent agent Casey Wasserman tells staff he’s selling his company after Epstein files fallout

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Casey Wasserman is selling his high-profile sports marketing and talent agency after his correspondence with Ghislaine Maxwell surfaced in the Epstein files.

The entertainment executive informed the Wasserman Group’s 4,000 staffers about the sale in a memo on Friday.

“At this moment, I believe that I have become a distraction to those efforts,” he wrote. “That is why I have begun the process of selling the company, an effort that is already underway.”

In January, the Justice Department began to release more than 3 million pages of documents related to convicted sex offender Jeffrey Epstein, who died in jail in 2019 while awaiting trial on sex-trafficking charges.

The names of numerous prominent people, such as Bill Gates and US Commerce Secretary Howard Lutnick, have shown up in the documents. While appearing in the files does not mean a person is associated with Epstein’s crimes, some have nonetheless faced a public fallout by association.

In Wasserman’s case, the documents revealed that the entertainment mogul flew on Epstein’s jet with several people, including former US President Bill Clinton. He also exchanged emails with Maxwell, who is serving a 20-year prison sentence for sex trafficking girls for Epstein. Wasserman’s emails with Maxwell were dated 2003, long before police began to investigate Epstein and over a decade before police arrested Maxwell.

Wasserman issued an apology following the revelations, but a backlash from his roster of top talent had already begun. Singer Chappell Roan, Olympian Abby Wambach, and others said they intended to leave his agency over his association with Epstein.

“It was years before their criminal conduct came to light, and, in its entirety, consisted of one humanitarian trip to Africa and a handful of emails that I deeply regret sending,” Wasserman wrote in the memo to staff on Friday. “And I’m heartbroken that my brief contact with them 23 years ago has caused you, this company, and its clients so much hardship over the past days and weeks.”

Read the full memo Wasserman sent to his employees:

Team:
I wanted to write to you all directly to share a few important updates. Over the past couple of weeks, I have spoken to many of you directly — and I wish I could have spoken with every one of you because you all have put your hearts and souls into this incredible organization.
First and foremost, I want to apologize to you. I’m deeply sorry that my past personal mistakes have caused you so much discomfort. It’s not fair to you, and it’s not fair to the clients and partners we represent so vigorously and care so deeply about.
The pain experienced by the victims of Jeffrey Epstein and Ghislaine Maxwell is unimaginable – and I’m glad, as I’m sure you all are, that those who helped them commit their crimes are rightly being held accountable.
Hopefully by now you know the facts about my limited interactions with those two individuals. It was years before their criminal conduct came to light, and, in its entirety, consisted of one humanitarian trip to Africa and a handful of emails that I deeply regret sending. And I’m heartbroken that my brief contact with them 23 years ago has caused you, this company, and its clients so much hardship over the past days and weeks.
Other than my children and my fiancée, there are two things that matter most to me in this world: this company that I founded 24 years ago, and the dream I’ve pursued for more than a decade of bringing the Olympic Games back to the city I love.
This organization, its leadership and the entire team mean the world to me. Our 4,000 employees are the absolute best in the business. I see you put it all on the line for your clients every day. Our clients expect — and deserve — world-class representation. And that’s exactly what they get because of all of you.
At this moment, I believe that I have become a distraction to those efforts. That is why I have begun the process of selling the company, an effort that is already underway. During this time, Mike Watts will assume day-to-day control of the business while I devote my full attention to delivering Los Angeles an Olympic Games in 2028 that is worthy of this outstanding city.
I so appreciate the passion and fight you bring to your jobs. It’s why you succeed.
I am beyond proud of what this company has accomplished to date and excited to watch its next chapter.
All my best,
Casey




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SoftBank-backed unicorn LTK lays off staff and doubles down on new tech for brands

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LTK, a Softbank-backed startup and creator economy unicorn, let go of some staff on Thursday as part of a reorganization, a company spokesperson confirmed to Business Insider.

The cuts were designed to refocus LTK’s business around its revamped brand platform and to account for structural changes to internal teams like marketing, according to the company.

The job reductions, which hit a variety of roles including software engineers and staffers who worked with creators, affected a low single-digit percentage of LTK’s overall head count, which numbers over 550 employees, they said.

“LTK recently completed a targeted organizational restructure to ensure we are aligned around the skills and priorities required for our next phase of growth,” the spokesperson said. “This was not a broad-based layoff, but a strategic realignment focused on strengthening performance and positioning the business for long-term success.”

LTK, previously known as RewardStyle, was founded around 15 years ago by president Amber Venz Box. The company, which says it’s profitable and doubled its EBITDA in 2025, has raised a little over $300 million in its lifetime. Most of that capital came in a 2021 round from SoftBank’s Vision Fund 2, which valued the startup at $2 billion.

Over the last decade, LTK has established itself as one of the leading players in affiliate marketing, building a network of influencers who promote products on social media in exchange for commissions.

Recently, the company has made a series of moves to establish itself beyond social media affiliate marketing.

The company relaunched its app for influencer-driven shopping, called LTK, in early 2025, to add more consumer-facing features as it sought to build its own brand identity with consumers.

In late 2025, the company announced it was revamping its platform for brands, offering features such as creator discovery and performance tracking at no cost. LTK makes money by collecting a commission on sales. The company said that over 1,000 brands have been onboarded onto the platform.

LTK is one of several creator economy startups that have focused their businesses on e-commerce. Other big players in the space include affiliate platform ShopMy and live-selling app Whatnot, which in October raised $225 million at an $11.5 billion valuation.




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A US Army general says new command tech lets him ditch the ‘hourlong staff meeting’

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New US Army warfighting software is speeding up and simplifying the command job, a commander said recently, sharing that it lets him scrap the “hourlong staff meetings” to make decisions.

The Army, like other services, believes that future wars will be determined by the speed of decision-making. That’s where the new Next Generation Command and Control, or NGC2, program is expected to make a substantial impact and modernize how the service fights.

At Fort Carson, Colorado, the Army’s 4th Infantry Division has been testing NGC2 in a series of exercises. The most recent one, Ivy Sting 4, added more components to the system, with different types of sensors and weapons on the battlefield feeding into one system that everyone can access.

“So it’s all in one place, and it’s there very, very quickly, so that the staff can see it across their functional systems,” said Maj. Gen. Patrick Ellis, commander of the 4th ID, at a recent media roundtable, explaining that “the fires person can see what the logistician sees, can see what the intel person sees.”

“I don’t have to have the hourlong staff meeting anymore,” the general said.


Soldiers stand around an artillery piece preparing to fire it in a field.

The Army’s new NGC2 system is predicting supply needs and simulating enemy actions.

US Army photo by Pfc. Thomas Nguyen



“If we’re actually using the technology as the tool that we’re prepping on and that we’re also fighting on,” he said, “I could sit there, I can look at it, I can make decisions, I can say, ‘Hey, here are my priorities for this or that.’ We all agree on it, we click save, and that’s done.”

The Army has facilitated the development of NGC2 with both the 4th ID and 25th Infantry Division in Hawaii and industry teams, including Anduril and Lockheed Martin, pursuing a Silicon Valley-style approach aimed at moving faster and rapidly integrating soldier feedback, delivering fixes immediately rather than months or years later.

On the heels of Ivy Sting 4, more than two weeks of field testing that involved live-fire exercises and an electronic warfare jamming scenario, Ellis and others said that NGC2 was making planning and executing battlefield missions more effective.

“We are no longer fighting with the network; we are now fighting using the network,” Ellis said.

During the Ivy Sting 4 testing event, 20 different types of sensors, such as drones, electronic warfare systems, artillery, and Stryker vehicles, were linked together.


A soldier holds up a radio to his mouth and holds a notebook. He's standing in a mountainous location.

The latest live-fire exercise included a variety of systems, weapons, drones, and capabilities.

US Army photo by Staff Sgt. Dane Howard



Data and artificial intelligence capabilities provide real-time information on the sensors. Soldiers can see how much ammunition they’ve got left or whether a Stryker will need maintenance or fuel soon. Simulations can predict what resources will be needed for certain tactics or actions, including different ways an enemy might attack.

As different platforms are brought onto NGC2, broadening what the platform can do, Army command and soldiers can see and communicate using the same data. The system is breaking down the silos that have previously hindered information flow.

“I’m feeling empowered as a commander to make more, better, and faster decisions because I’ve got access to all that data,” Ellis explained.

Many NGC2 components are being built with off-the-shelf technology and standard commercial software practices, and the vendor teams involved are working on the ground with soldiers. The closer working relationship means soldier feedback is being incorporated more quickly.

“We work through these obstacles, and we learn how to do something, and once we run into a roadblock, we figure out a way to solve that problem, and then that problem is now solved for the Army,” he said. “We’re not relearning these lessons over and over again.”




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Read the memos sent to staff announcing Washington Post publisher Will Lewis’ resignation

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Will Lewis’ two-year tenure as publisher of the Washington Post is over.

His time leading the nearly 150-year-old newspaper, which was bought by billionaire Jeff Bezos in 2013, was marked by buyouts and shrinking coverage. Most recently, on Wednesday, the Post laid off hundreds of journalists, many of them covering foreign affairs.

Employees and supporters gathered outside the Post’s offices on Saturday to protest the drastic cuts.

“Each and every day our readers give us a roadmap to success. The data tells us what is valuable and where to focus,” Bezos said in a statement on Saturday, his first public comments since the layoffs. “Jeff, along with Matt and Adam, are positioned to lead The Post into an exciting and thriving next chapter.”

Below are the text of memos emailed to Post staff announcing Lewis’ departure and the appointment of Chief Financial Officer Jeff D’Onofrio as acting publisher.

Will Lewis’ email to staff

“All – after two years of transformation at The Washington Post, now is the right time for me to step aside. I want to thank Jeff bezos for his support and leadership throughout my tenure as CEO and Publisher. The institution could not have a better owner.

During my tenure, difficult decisions have been taken in order to ensure the sustainable future of The post so it can for many years ahead publish high-quality nonpartisan news to millions of customers each day.

With gratitude, Will”

Post PR email announcing D’Onofrio’s appointment

“The Washington Post is announcing Jeff D’Onofrio as its acting Publisher and CEO, effective immediately.

D’Onofrio, a strategic business leader and proven architect of the new media landscape, joined The Post in June 2025 as Chief Financial Officer following leadership roles across global companies including Raptive, Tumblr, Yahoo and Google. He succeeds William Lewis, who has served as Publisher and CEO for the past two years.

“The Post’s resolute commitment to writing the first rough draft of history anchors and imprints its future,” said D’Onofrio. “I am honored to become part of charting that future and to take the lead in securing both the legacy and business of this fierce, storied American institution.”

“The Post has an essential journalistic mission and an extraordinary opportunity. Each and every day our readers give us a roadmap to success. The data tells us what is valuable and where to focus,” said Jeff Bezos, owner of The Washington Post. “Jeff, along with Matt and Adam, are positioned to lead The Post into an exciting and thriving next chapter.”

D’Onofrio served as Chief Financial Officer for Raptive, the largest digital ad management company serving over 6,000 creators and publishers. He oversaw the finance, human resources and data and analytics teams, while negotiating key partnerships and acquisitions that helped power Raptive to impressive revenue and profit growth.

Immediately prior to his role at Raptive, D’Onofrio was Chief Executive Officer at Tumblr and held other key leadership positions there including President, Chief Operating Officer, and CFO. His expert fluency in both today’s media business landscape also grew from his leadership and management roles at Google, Zagat, Yahoo!, and Major League Baseball (MLB Advanced Media).”




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XAI shares Q&A with staff on what they can expect from the SpaceX merger

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XAI told workers the company won’t be changing its name anytime soon, even after it announced SpaceX had acquired the company on Monday.

In a Q&A sent to employees on Monday, the company said xAI’s mission remains “unchanged” and that its price-to-share valuation will remain the same. Workers will soon learn more about how the acquisition will impact their equity, according to the Q&A.

The joint venture is still continuing to prepare for a “possible IPO in 2026,” according to the memo.

“Whether it actually happens, when it happens, and at what valuation are still highly uncertain,” it said.

SpaceX, which Musk founded in 2002, has reportedly been gearing up for an initial public offering that could value it at $1.5 trillion.

SpaceX and xAI did not immediately respond to a request for comment from Business Insider.

XAI plans to hold an all-hands in the coming days and host trainings related to the merger, the internal memo said. For now, both companies will maintain their separate branding, but the company “will be looking at how this might change in the future,” it said.

Despite the acquisition, xAI staff will not be allowed to access internal SpaceX databases or collaborate directly with workers at the rocket ship company without direct approval, the memo said. The companies will be kept separate due to regulations that control the sharing of defense and space-related technology that could impact national security. SpaceX workers may be allowed access to xAI internal tools, it said.

SpaceX and xAI CEO Elon Musk sent a memo to staff earlier on Monday announcing the acquisition. In the email, which was later shared online, he said the merger would allow the joint venture to eventually launch data centers in space.

He wrote that the deal would create “the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the world’s foremost real-time information and free speech platform.”

Last year, Musk announced that xAI merged with his social media company, X.

Do you work for xAI or have a tip? Contact this reporter via email at gkay@businessinsider.com or Signal at 248-894-6012. Use a personal email address, a non-work device, and non-work WiFi; here’s our guide to sharing information securely.




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Amazon staff cope with looming layoffs by roasting Jeff Bezos’ ‘2-pizza rule’

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Amazon employees are doing what Big Tech workers often do when they’re anxious about layoffs: making memes.

The company is expected to cut thousands more corporate roles as soon as next week, Business Insider reported on Thursday, citing people familiar with the matter. This coming round would mark another wave of mass layoffs at Amazon in just a few months, following the roughly 14,000 jobs eliminated in October.

In the absence of official companywide communication, workers have been trying to ease tension in an internal Slack channel with more than 26,000 employees who joined by posting memes and jokes, which Business Insider viewed.

The focus of their snark? Amazon founder and former CEO Jeff Bezos’ famous “two-pizza rule,” originally designed to keep meetings lean and productive. The rule was simple: never have a meeting so large that two pizzas couldn’t feed the entire group.

As the company continues to thin its ranks, employees are using the same logic to point out just how much leaner their teams are about to become.

Amazon did not respond to a request for comment from Business Insider.

One meme showed a single, thin sliver of pizza with the caption “how we feed two pizza teams.”

Another image featured two Amazon Web Services-branded pizza boxes, with the caption “did someone say 2 pizza team?” The meme is a nod to the company’s cloud division, where many of the cuts are expected to land.

“I don’t think I’ve ever been on a team that could be completely fed with just two reasonably sized pizzas until you were still hungry very frugal,” one employee wrote in the Slack channel. “Increasing ‘span-of-control’ for managers seems to be the new rage.”

Others wondered if two Costco pizzas would be considered “reasonably sized.”

“I was thinking more like Domino’s Large pizzas,” another employee wrote.

The pizza jokes weren’t the only coping mechanism. Employees also shared non-pizza memes.

One riffed on the rumored timing, splashing “JANUARY 27TH” over the scene from “The Shining” showing Jack Nicholson’s character smashing through a door with an ax and “AWS” over his face.

Another meme used the “panik/kalm” template to mock corporate buzzwords. It shows an error message about email not working, presumably because the employee was laid off, with the words “Mail not working (have I become Nimble?!)”, referring to CEO Andy Jassy’s 2025 remarks about cutting jobs to stay nimble.

Other posts leaned into the dread of the unknown: one meme laid out a checklist for employees for January 27: “able to login,” “mail and Slack works,” and “no random HR meeting in calendar.”

Another simply captured the vibe in all caps: “I don’t know what will happen on 27 Jan and at this point I’m too afraid to ask.”

Amazon isn’t the first tech giant to see a nervous workforce poke fun at its internal culture. In 2023, Google employees flooded the company’s internal message boards with memes mocking its lavish developer conference, which came months after it laid off 12,000 employees.

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Divya Nettimi’s Avala Global loses more staff despite a strong 2025

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Avala Global, launched by former Viking Global star trader Divya Nettimi, had strong performance numbers in 2025.

However, the firm has continued to lose staff.

Three investment analysts left in the second half of 2025, and Nettimi’s fund is set to lose two more senior executives in 2026, including the firm’s COO.

Avala Global, the $2 billion manager launched by Nettimi in late 2022, gained 22.1% in 2025, according to the firm’s year-end letter to clients, which was viewed by Business Insider. Several people close to the firm told Business Insider that the manager achieved these returns despite losing analysts Jordan Straff, Nadine Lin, and Michael Wang.

Straff was a longtime investor at Roberto Mignone’s Bridger Capital before joining Avala in early 2024, while Lin and Wang both joined from Steve Cohen’s Point72.

The manager will also lose its COO, David Angstreich, and top fundraiser, Rebecca Chia. Both are set to depart in the coming months, three people close to the firm tell Business Insider.

Angstreich and Lin did not respond to requests for comment, while Chia and Straff declined to comment. Business Insider could not reach Wang in time for publication. Avala declined to comment.

Angstreich has been with Avala since its launch, while Chia joined in mid-2025 after stints at Atalaya Capital and Third Point.

The letter highlighted the team’s “depth and experience” but made no mention of the departures or expected exits. The firm hired onetime Viking Global general counsel Andrew Genser as its in-house lawyer last year and added at least four new analysts in 2025, LinkedIn shows, including two end-of-year hires from private equity firm Clayton Dubilier & Rice.

“We believe we have laid a strong foundation for the next phase of our growth,” the letter reads.

Last June, Business Insider reported that a majority of Avala’s day-one team had left the firm, including the entire four-person investing team that reported to Nettimi. Three people who had previously worked at the firm told Business Insider they left because of a tense workplace environment that came from the top of the firm. While she declined to address the specifics around different employees’ exits, Nettimi told Business Insider last year that she was confident in her team and the process for finding and vetting new talent.

Nettimi, a former Forbes 30 under 30 honoree who spent years investing at Viking Global, has managed to make money despite the churn. The firm has made more than 20% in each of the three full years it has been trading, besting the S&P 500 and Nettimi’s former manager over the same period.

The firm’s most recent letter to investors stated that long-term holdings in stocks such as data-storage company Seagate Technology, German power company Siemens Energy, and Finnish sporting goods conglomerate Amer Sports were key in driving performance last year.




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The list of companies laying off staff this year includes Citi and Angi, with dozens of others like Meta warning of job cuts

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The year 2026 is just getting started, and layoffs are already underway.

Companies, including Angi, the company formerly known as Angie’s List, and the popular web tool Tailwind, have cut staff, citing the impact of artificial intelligence among the reasons for the layoffs.

More than 100 other companies, from Amazon to Nike to Verizon, have filed legally mandated WARN notices about job cuts to come in 2026, according to WARN Tracker. Some of the cuts are part of previously announced reductions.

This year’s cuts follow three years of significant workforce reductions across a broad range of industries, including tech, media, finance, and retail.

The moves come as artificial intelligence, public policy, and broader economic conditions present sweeping changes to the business landscape.

A World Economic Forum survey last year found that some 41% of companies worldwide expected to reduce their workforces in the next five years because of the rise of artificial intelligence. The survey also found that jobs in big data, fintech, and AI are expected to double by 2030.

Last year, Business Insider tracked layoffs at around 65 major companies, such as Amazon, Meta, Paramount, and Starbucks. In 2026, we’ll continue to track additional job cuts based on company announcements, WARN notices, and our own reporting.

Here are the companies with job cuts underway in 2026, listed in alphabetical order.

Angi is cutting 350 jobs

Angi, a contractor listing platform, was previously known as Angie’s List.

Donald King/AP

Angi, the popular contractor listing site once known as Angie’s List, said in January that it was cutting around 350 jobs “to reduce operating expenses and optimize the organizational structure in support of long-term growth.” The company also said it’s making the cuts “in light of AI-driven efficiency improvements.”

In a January 7 SEC filing, Angi said that the cuts would save between $70 million and $80 million in annual spending. The layoffs will cost the company between $22 million and $30 million, according to the filing.

Citi’s job cuts continue this year


Citibank logo

Citibank said it will continue to cut jobs in 2026.

Kevin Carter/Getty Images

Citi will cut more jobs this year as part of its plan to reduce its workforce by 10%, or 20,000 employees.

In a statement on January 13, the bank said that it will continue to reduce head count in 2026.

“These changes reflect adjustments we’re making to ensure our staffing levels, locations and expertise align with current business needs,” a spokesperson for Citi said.

The plan was detailed in the company’s January 2024 earnings report and could save the bank as much as $2.5 billion.

Meta is preparing for layoffs


The Meta Quest 3s, the standalone virtual reality headset developed by Reality Labs, a subdivision of the American company Meta Platforms, is exhibited at the Qualcomm pavilion during the Mobile World Congress 2025 in Barcelona, Spain, on March 5, 2025. (Photo by Joan Cros/NurPhoto via Getty Images)

Meta is preparing to slash jobs within its Reality Labs division as the branch’s cash burn continues.

Joan Cros/NurPhoto via Getty Images

Meta is preparing to slash jobs within its Reality Labs division, the unit responsible for Mark Zuckerberg’s metaverse ambitions, three people familiar with the matter told Business Insider.

Two employees said that teams working on virtual reality headsets and Horizon Worlds, the company’s VR social network, will be disproportionately affected. The New York Times reported that roughly 10% to 15% of the division’s 15,000 employees are expected to be laid off, with announcements coming as soon as this week.

The cuts coincide with a high-stakes division-wide meeting scheduled for Wednesday. Meta’s CTO and Reality Labs chief Andrew Bosworth described the upcoming gathering as the “most important” of the year and urged employees to attend in person.

Tailwind cut 3 of its 4 engineers

Tailwind, a popular web tool, said it cut three of its four engineers in January, citing an AI-driven decline in revenue.

“75% of the people on our engineering team lost their jobs here yesterday because of the brutal impact AI has had on our business,” CEO Adam Wathan wrote in a GitHub comment on January 6 that made waves in the tech community.

Is your company conducting layoffs? Got a tip?


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Have a tip about company layoffs? Contact Business Insider reporter Dominick Reuter using a personal email address, a non-work WiFi network, and a non-work device; here’s our guide to sharing information securely.




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