Block Inc., the payments company co-founded by Twitter’s Jack Dorsey, plans to reduce its workforce by approximately 40%, affecting around 4,000 employees, as it integrates artificial intelligence (AI) tools into operations. The announcement triggered a sharp rally, with shares climbing more than 25%.
Dorsey Outlines AI Strategy in Employee Memo
CEO Jack Dorsey emphasized in a memo to staff that AI adoption fundamentally shapes the company’s future direction. He stated, “Humans can now select more items more accurately using AI tools.” Dorsey added that within one year, Block aims to match the efficiency of major corporations while proactively managing structural shifts.
He clarified, “This isn’t merely following a trend—most large companies are pursuing similar paths.” Dorsey also addressed speculation on X (formerly Twitter) in a note to employees, asserting the firm’s solid financial health amid layoff rumors. He noted that revealing major decisions sparks anxiety but assured, “It’s a safe and thorough process.”
“This decision came from me, and I take full responsibility,” Dorsey affirmed.
Stock Reaction and Industry Trends
Investors reacted positively to the news, driving Block’s stock up 25% on international exchanges. This marks the company’s largest workforce reduction to date.
Tech giants worldwide increasingly turn to AI to streamline operations and cut costs. Industry experts observe that firms either transform through AI integration or risk becoming targets for cost-saving measures, fueling a broader wave of AI-driven layoffs.
