BLOCK CUTS 40% OF WORKFORCE, CITING AI EFFICIENCY GAINS
Block Inc. is laying off more than 4,000 employees—roughly 40% of its 10,000-plus workforce—as CEO Jack Dorsey repositions the financial technology company around artificial intelligence capabilities. The cuts sent Block shares up more than 20% in premarket trading Friday.
"Intelligence tools have changed what it means to build and run a company," Dorsey said in a shareholder letter. "A significantly smaller team, using the tools we're building, can do more and do it better."
Block, which operates Square and Cash App, reported fourth-quarter gross profit jumped 24% year-over-year. Shares closed Thursday at $54.53 before climbing to nearly $69 in after-hours trading as investors interpreted the restructuring as a path to improved profitability.
Dorsey's explicit framing of AI as the driver—posted simultaneously to X, the platform he co-founded—marks a notable moment in the ongoing debate over whether artificial intelligence will meaningfully reduce headcount across corporate finance and operations functions. For CFOs watching their own AI implementation roadmaps, Block's move signals at least one major fintech leader believes the efficiency gains are real enough to act on immediately.
Watch for similar announcements from other financial services firms in coming weeks.
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