"Intelligence tools have changed what it means to build and run a company, Jack Dorsey said in a letter to shareholders in Block, the parent company to online payment platforms such as Square and Cash App. A significantly smaller team, using the tools we're building, can do more and do it better, he said."
"For years, we have debated whether AI would dent jobs at the margin. Now we have a public case study in which the CEO explicitly says that intelligence tools have changed what it means to build and run a company, Stephen Innes of SPI Asset Management said in a commentary. Other large employers have announced tens of thousands of cuts in recent months. Some have downplayed the AI link. Block did not."
Block, the fintech parent company of Square and Cash App, announced layoffs of more than 4,000 of its 10,000+ employees. CEO Jack Dorsey attributed the restructuring to artificial intelligence capabilities that allow smaller teams to accomplish more work efficiently. Dorsey stated that intelligence tools have fundamentally changed how companies operate and scale. The announcement explicitly linked job cuts to AI adoption, distinguishing Block from other companies that downplayed automation's role in recent layoffs. Investors responded positively, with Block's stock surging to nearly $69 in after-hours trading, up from $54.53 at Thursday's close. The company reported strong fourth-quarter results with gross profit jumping 24% year-over-year. Dorsey outlined support measures for affected employees, noting that overseas terms may differ.
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