"Intelligence tools have changed what it mean to build and run a company. We're already seeing it internally. 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."
"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 had two choices: gradually cut our workforce over months and years or be honest about where we are and act on it now."
"Goldman Sachs noted in February that the increasing pace of AI adoption could drive up unemployment this year, and estimated that the technology had already resulted in 5,000 to 10,000 monthly net job losses last year. A November study from MIT found that AI could already replace nearly 12% of the workforce in the US."
Block announced a layoff of 4,000 of its 10,000 employees, attributing the reduction to increased AI productivity. CEO Jack Dorsey stated that intelligence tools have fundamentally changed how companies operate, enabling smaller teams to achieve greater results. The company's stock surged over 20% following the announcement, with investors viewing the cuts as a path to improved profitability. Block's decision reflects broader industry trends, as other tech companies like Salesforce have similarly reduced workforces citing AI efficiency. Goldman Sachs estimates AI adoption could increase unemployment significantly, while MIT research suggests AI could replace nearly 12% of the US workforce. Dorsey emphasized the layoffs resulted from strategic positioning rather than business troubles, noting Block exceeded Wall Street expectations with $6.25 billion in fourth-quarter revenue.
Read at www.theguardian.com
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