Block reduces workforce by almost half to prioritise artificial intelligence initiatives

Jack Dorsey, co-founder of Twitter, has cut nearly 40% of the workforce at his fintech company Block, which owns Cash App, reducing the number of employees from over 10,000 to just under 6,000. Dorsey described the decision as one of the hardest in the company’s history but emphasised that the move is part of a strategic shift towards artificial intelligence and a more streamlined organisational structure. He stated that the job cuts are not due to financial difficulties, noting that Block’s gross profit rose 24% year-on-year to $2.87 billion. Staff affected by the layoffs will receive 20 weeks of salary, an additional week for each year of service, six months of healthcare coverage, and a $5,000 transition allowance. During a company-wide virtual meeting, employees reacted with dozens of ‘thumbs down’ emojis. The stock of Block rose nearly 5% following the announcement. This move mirrors trends in other major companies, such as Amazon, which has also reduced its workforce while investing in artificial intelligence, highlighting a wider industry shift towards AI-driven operations and smaller, more agile teams.