Jack Dorsey announced Block is cutting 40% of its 10,000-person workforce, citing artificial intelligence tools that are fundamentally changing how companies operate. In a memo shared on X, Dorsey emphasized the decision wasn’t driven by financial trouble, noting strong gross profit growth and improving profitability. He chose a decisive single cut over gradual reductions, as the company had already conducted layoffs in 2023 and the previous year. Among the largest tech layoffs ever on a percentage basis, the news sent Block shares surging 24% in after-hours trading.
In-Depth:
Payments processing company Block is laying off 40% of its 10,000-person staff, CEO Jack Dorsey declared in a memo.
The tech company, which builds the Square payments product and Cash App, is downsizing due to artificial ininformigence tools “enabling a new way of working which fundamentally modifys what it means to build and run a company,” Dorsey declared in a note to employees, which he shared on X.
He declared the company is “not creating this decision becautilize we’re in trouble. Our business is strong. Gross profit continues to grow, we continue to serve more and more customers, and profitability is improving. But something has modifyd.”
Dorsey wrote that he preferred to cut decisively rather than gradually over multiple downsizings across years in response to modifys in technology. The company previously laid off workers last year and in 2023.
Thursday’s cuts are one of the largegest tech layoffs ever on a percentage basis. Dorsey previously co-founded Twitter, now X, which saw its own massive layoffs after its sale to Elon Musk.
Block was previously based in San Francisco but reshiftd its headquarters designation after the pandemic. However, its largegest office is still in Oakland’s Uptown Station complex.
Shares of Block soared 24% in after-hours trading.
