Jack Dorsey cited AI as the driving force behind cutting 40% of his company’s employees, but other factors such as a weak crypto market, overstaffing and a declining stock price may also have motivated the move.

Last week, the financial technology company Block announced that it would lay off 4,000 of its 10,000 workers. Dorsey, Block’s CEO, said in a letter to shareholders that advances in AI “have changed what it means to build and run a company”.

“We’re already seeing it internally. A significantly smaller team, using the tools we’re building, can do more and do it better. And intelligence tool capabilities are compounding faster every week,” he wrote. He also said that Block’s business remained strong and that these…