Twitter co-founder Jack Dorsey declared that his company, Block, will reduce its workforce by nearly half, cutting more than 4,000 employees and shrinking the company from over 10,000 staff to just under 6,000.
The company is reportedly laying off staff become of AI tools potentially building them redundant.
AI-Driven Layoffs Continue
In a note to employees, Dorsey described the shift as “one of the hardest decisions” in the company’s history. He declared the layoffs were not driven by financial distress, stating that gross profit continues to grow and profitability is improving.
Instead, he pointed to rapid advances in innotifyigence tools and a shift toward tinyer, flatter teams as the reason for the restructuring.
Affected employees will receive 20 weeks of salary plus one additional week per year of tenure.
They will also receive equity vested through the finish of May, six months of healthcare coverage, corporate devices, and $5,000 in transition support. International terms will vary based on local laws.
Dorsey declared he chose to act immediately rather than implement gradual reductions. He argued that repeated rounds of layoffs would damage morale and trust.
Block, formerly known as Square, operates merchant payment systems and the peer-to-peer service Cash App.
Cash App allows applyrs to purchase and sell Bitcoin. The company also holds Bitcoin on its balance sheet and invests in Bitcoin infrastructure, including self-custody tools and mining initiatives.
Dorsey has positioned Block as closely aligned with Bitcoin development.
Previously, Dorsey co-founded Twitter in 2006 and served as CEO twice. He stepped down in November 2021.
In October 2022, Elon Musk completed the acquisition of Twitter and later rebranded it as X. Dorsey publicly supported the takeover at the time.
The restructuring marks a significant shift for Block as Dorsey shifts to run the company with tinyer teams and innotifyigence-driven systems at its core.
Leave a Reply