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Block announced Thursday that it will cut nearly half its workforce as the payments company works to embed itself artificial intelligence (AI) during all his activities.
The layoffs will impact more than 4,000 company and CEO jobs Jack Dorsey indicated he has moved forward with a single round of major cuts rather than a series of smaller staff reductions to give the company more room for growth as it adapts to the AI era.
Dorsey explained the decision in a series of posts on
He said in his note that the job cuts are “one of the most difficult decisions in the history of our company: we are reducing our organization by almost half, from more than 10,000 people to just under 6,000. This means that more than 4,000 of you will be asked to leave or enter into consultations.”
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Jack Dorsey said the layoffs will give Block a better route to growth. (Marco Bello/AFP via Getty Images)
Block will bid affected employees Twenty weeks of salary and one week per year, stock vested through the end of May, six months of health care, business equipment and $5,000 to spend on whatever they need to help with their transition, Dorsey said.
Dorsey said the “intelligence tools we create and use, combined with smaller and flatter teams, enable a new way of working that fundamentally changes what it means to build and run a business. And that is accelerating quickly.”
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XYZ | BLOCK INC. | 62.37 | +7.77 |
+14.23% |
He went on to say that Block will be built with “intelligence at the core of everything we do: how we work, how we create, how we serve our customers.”
Dorsey added in a follow-up post that the company “overhired during Covid because I wrongly built two separate business structures (square & cash app) instead of 1, which we corrected in mid-2024. But this ignores the complexities we have incurred through lending, banking and BNPL.”
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Dorsey said he made a mistake in how he had different structures within Block for Square and Cash App. (Matt Crossick/PA Images via Getty Images)
Block shares soared following the announcement that almost half of the company’s workforce will be laid off AI reshufflingup 17% in Friday morning trading.
The company’s shares are up 22% in the past week, but are down more than 2% year to date.
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