"I don't think we're early to this realization, he said. I think most companies are late. Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes. I'd rather get there honestly and on our own terms than be forced into it reactively."
"Block has been restructuring its business model and staffing since 2024 as the company's stock has lagged. At the same time, the company has invested heavily in AI tools to run more efficiently, including building its own tool called Goose."
"The cuts are the latest case of workforce reductions across fintech and the broader technology sector, in which companies have pointed to AI as a catalyst, with companies from Amazon Inc. to Salesforce Inc. citing the technology as justification for shrinking headcounts."
Block, the financial technology company founded by Jack Dorsey, is reducing its workforce by approximately 50% through the elimination of 4,000 positions. The company frames this restructuring as a strategic response to artificial intelligence's transformative impact on labor productivity. Block has invested significantly in AI tools, including developing an internal platform called Goose, to improve operational efficiency. Dorsey stated that he believes most companies will eventually make similar workforce reductions due to AI capabilities, positioning Block as ahead of industry trends. The announcement triggered a 21% stock price increase. This reduction follows ongoing job eliminations tied to performance reviews and reflects broader fintech and technology sector trends where companies cite AI as justification for headcount reductions.
Read at www.mercurynews.com
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