Block, the parent company of Cash app, announced on Thursday that it would lay off 4,000 employees, reducing its workforce by nearly half.

Jack Dorsey, the co-founder of the company, said that artificial intelligence will transform future productivity. Dorsey said in a conference call with analysts that many companies will ultimately have to downsize due to the impact of AI.

He said that within the next year, the vast majority of companies will arrive at the same conclusion and make similar structural adjustments.

Block did not provide details on how its AI tools specifically rendered certain positions redundant. Some analysts questioned whether AI has truly transformed the company or if it is merely being used as a pretext for cost-cutting that was already planned.