"A significantly smaller team using the tools we're building can do more and do it better. Dorsey told analysts on Block's earning call that AI was the reason 4,000 workers were losing their jobs, emphasizing that the company's AI capabilities enabled reduced headcount while maintaining or improving output."
"I had a hunch that, at some point, the company would cut people because of AI. I just didn't think it would be right now. Ivan Ureña-Valdes, a data analyst laid off after four years at Block, expressed that while he anticipated AI-driven cuts, the timing and scale of the layoffs surprised him."
Block CEO Jack Dorsey announced a 40% workforce reduction affecting 4,000 employees, explicitly attributing the layoffs to artificial intelligence capabilities. Prior to the announcement, workers had been adopting AI tools with optimism, though some expressed concerns about potential job displacement. The company had already conducted smaller performance-based cuts. Dorsey stated that a smaller team using Block's AI tools could accomplish more effectively. Following the layoff memo, Dorsey held a video call with remaining staff to explain the decision, during which employees reacted with mixed emotions including thumbs-down and crying-laughing emojis.
#ai-driven-layoffs #workforce-reduction #artificial-intelligence-automation #tech-industry-employment #block-financial-services
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