"Intelligence tools have changed what it means to build and run a company. 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."
"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 posted gross profit of $10.36 billion in fiscal year 2025, up 17% year over year, and is raising its 2026 gross profit guidance to $12.20 billion. In Q4 2025 alone, gross profit grew 24%."
Block, a payments and financial services company, is reducing its workforce by over 4,000 employees—nearly half its staff—from over 10,000 to just under 6,000 positions. Despite this significant reduction, Block remains highly profitable with gross profit of $10.36 billion in fiscal year 2025, up 17% year-over-year, and raised 2026 guidance to $12.20 billion. CEO Jack Dorsey attributes the cuts to AI tools enabling smaller teams to accomplish more work efficiently. He predicts that within one year, the majority of companies will reach similar conclusions and implement comparable structural changes. This trend extends beyond Block, with other profitable companies including WiseTech Global, Amazon, Microsoft, Workday, and Salesforce also citing AI efficiency gains in recent workforce reductions.
#ai-driven-workforce-reduction #automation-and-efficiency #tech-industry-layoffs #profitable-companies-restructuring #future-of-work
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