Jack Dorsey’s Block to cut nearly half its workforce in AI overhaul, shares surge

Block will cut over 4,000 jobs, nearly half its workforce, ‌as advances in AI reshape how it builds and runs its ​business

Block on Thursday said it will cut over 4,000 jobs, nearly half its workforce, ‌as advances in AI reshape how it builds and runs its ​business, sending its shares up 23% in after-hours trading.

The layoffs ⁠signal how the AI boom is translating from hype into workforce changes, fueling long-held concerns among workers and economists that the technology could eliminate roles even as it boosts ‌productivity and profits.

“Intelligence tools have changed what it means to build and run a company. We’re already seeing it internally. A significantly ‌smaller team using the tools can do more and do ‌it better,” ⁠CEO Jack Dorsey said in a statement.

“I don’t think we’re ⁠early to this realization. I think most companies are late,” he added.

In a post on social media platform X, Dorsey said Block opted for a single deep round of cuts ​instead of multiple smaller layoffs over ‌time. He said a smaller company would also give it space to grow the business the right way, instead of constantly reacting to market pressures.

Investors have been rewarding companies that show AI-driven cost savings, and the ‌sharp workforce reduction signals the scale at which the technology is ​starting to translate into lower expenses and higher margins in some industries.