Twitter co-founder Jack Dorsey’s Block, Inc. is cutting 40% of its workforce, laying off more than 4,000 employees, and shrinking its staff to under 6,000.
CEO Dorsey told shareholders the move reflects the growing power of “intelligence tools,” not business weakness. He said smaller teams using AI can work faster and more efficiently.
Block’s CFO, Amrita Ahuja, said AI will help highly skilled teams automate more tasks. Dorsey added that gross profit continues to grow and insisted the company remains strong.
Block’s headcount had surged from 3,835 in 2019 to more than 10,000 before the layoffs. Now, it is returning to pre-pandemic levels. Investors welcomed the cuts, sending shares up as much as 24%.
​​Dorsey predicted most companies will soon make similar changes as AI reshapes the tech industry and job market.