Block Cuts About 40% of Workforce, Jack Dorsey Advances AI-First Strategy

Odaily News Financial technology company Block has announced a large-scale layoff plan. Co-founder Jack Dorsey stated that the company will cut nearly 4,000 positions, reducing its total workforce from over 10,000 to less than 6,000. This move aims to promote a leaner, flatter, and more AI-centric organizational structure.

Dorsey indicated that despite the company's solid financial condition and continuous growth in gross profit, artificial intelligence and intelligent tools are profoundly changing how the company operates, necessitating a comprehensive restructuring. He pointed out that while large-scale adjustments carry risks, maintaining the status quo also poses risks, and the company has conducted a thorough assessment of its staffing needs.

Unlike gradual layoffs, Block has chosen to implement the large-scale workforce reduction all at once to avoid the impact of prolonged uncertainty on employee morale. Affected employees will receive 20 weeks of base severance pay plus additional compensation calculated based on their length of service.

Following the announcement, Block's stock price rose over 20% in after-hours trading. The company's closing price that day was $54.53, with a current market capitalization of approximately $31 billion. Its stock price has cumulatively declined about 16% over the past year.