SF-Based Fintech Block Lays Off Nearly Half Its Staff, Because of AI

"The core thesis is simple. 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. 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."

"We're not making this decision because we're in trouble. Our business is strong. Gross profit continues to grow, we continue to serve more and more customers, and profitability is improving. But something has changed. That's accelerating rapidly."

"Repeated rounds of cuts are destructive to morale, to focus, and to the trust that customers and shareholders place in our ability to lead. I'd rather take a hard, clear action now and build from a position we believe in than manage a slow reduction of people toward the same outcome."

Block announced a mass layoff of approximately 4,000 employees, representing 40% of its 10,000-person workforce. CEO Jack Dorsey attributed the decision to artificial intelligence fundamentally changing how companies operate and scale. He stated that intelligence tools paired with smaller, flatter teams enable new working methods that reduce the need for larger staff. Despite the layoffs, Block's business remains strong with growing gross profit and improving profitability. Dorsey chose immediate, decisive action over gradual cuts to preserve employee morale and organizational focus. The decision boosted investor confidence, with Block's stock rising 5% following the announcement.

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