Block ditches 4,000 staff, because AI can do their jobs

"Intelligence tools 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."

"We're already seeing that the intelligence tools we're creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company. and that's accelerating rapidly."

"I believe the majority of companies will reach the same conclusion and make similar changes"

Block, the financial services and cryptocurrency company founded by Jack Dorsey, announced a 40 percent workforce reduction affecting approximately 4,000 employees. The company justified the layoffs by stating that newly implemented AI intelligence tools paired with smaller, flatter teams enable more efficient operations. Despite strong financial performance with Q4 revenue of $6.25 billion and full-year revenue of $24.2 billion, Dorsey argued that AI has fundamentally changed how companies operate. He chose immediate, comprehensive layoffs over gradual reductions to avoid prolonged morale damage and maintain organizational focus during the operational restructuring.

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