Dorsey claims that it’s better to do one big cut as “repeated rounds of cuts are destructive to morale.” On that point, he’s right. A Careerminds study shows that serial layoffs are bad for morale and employee health. That said, big cuts can also be dumb cuts. Look no further than X to see a shining example of how Elon Musk fired a bunch of people, only to then hire them back. And transformative change is hard, requiring new processes, cultural norms, tech integration, and go-to-market strategies. It’s why leaders like BD’s Tom Polen argue lean practices are a prerequisite for AI. Block is a company that also mines Bitcoin, has had serial layoffs, and spent $68 million five months ago to fly everyone in for an “in-person company event” with Jay-Z. Raise your hand if you think Dorsey has this all figured out.
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