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Block Inc. Announces Massive Workforce Reduction as Part of AI-Driven Restructuring

Key Points
  • Block Inc., Jack Dorsey's fintech company, is cutting 40-50% of its workforce as part of an AI-driven restructuring.
  • CEO Jack Dorsey described the move as a strategic evolution toward more efficient operations using artificial intelligence tools.
  • The announcement reportedly triggered a 23% surge in Block's share price as investors reacted positively to the prospect of leaner operations.

, formerly known as Square, has announced significant workforce reductions as part of a strategic shift toward artificial intelligence. According to reports, the company is cutting approximately 40-50% of its workforce, which would represent nearly 4,000 jobs. The decision was communicated by CEO Jack Dorsey in a memo shared via X, where he described the move as a "strategic evolution" aimed at "re-centring" the company around a more efficient, AI-driven model rather than a sign of financial distress.

Dorsey reportedly stated that AI tools and a flatter organization will fundamentally change how companies operate, allowing "smaller and smarter" teams to achieve outcomes that previously required larger workforces. The announcement triggered a positive market response, with Block's share price reportedly surging over 23% in after-hours trading.

strategic evolution aimed at re-centring the company around a more efficient, AI-driven model rather than financial distress

Jack Dorsey, CEO

We no longer need the mass of people we once did to maintain our velocity

Jack Dorsey, Block CEO

Transparency

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