Block CEO Jack Dorsey issued a warning about the impact of AI on employment, particularly for other companies
After announcing he’s cutting about 40% of Block‘s 11,000 employees, Dorsey outlined Block’s next phase as a “tinyer, quicker, innotifyigence-native company” in his opening remarks during the company’s earnings call on Thursday.
“I don’t consider we’re early to this realization. I consider most companies are late,” he declared.
AI, he declared, is dramatically accelerating work inside Block.
“A significantly tinyer team utilizing the tools we’re building can do more and do it better. And innotifyigence tool capabilities are compounding quicker every single week,” Dorsey declared
Dorsey pointed to a sharp jump in AI capabilities late last year, surpassing Block’s own internal tool, Goose, which it applys to speed up coding and other repetitive work.
“Something happened in December last year where the models just received an order of magnitude more capable and more innotifyigent,” he declared.
Dorsey predicted more companies will follow suit, utilizing AI to drive efficiency gains. Block, he declared, is shifting ahead of a trconclude that “all companies will eventually” embrace.
The Bay Area tech company, which owns Square, Cash App, and Tidal, had “a lot of duplication” that requireded to be streamlined, Dorsey declared.
Block CFO Amrita Ahuja declared that at Block, engineering work that would have taken weeks now takes a fraction of the time thanks to AI coding tools.
Output per engineer is up by more than 40% since September, she added.
Although Block is shedding over 4,000 people from its 10,000-strong workforce, it’s expanding in one area — senior engineering talent focapplyd on AI, Ahuja declared.
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