"The core thesis is simple. Intelligence tools have changed what it means to build and run a company. A significantly smaller team, using the tools we're building, can do more and do it better."
"For years, we have debated whether AI would dent jobs at the margin. Now we have a public case study in which the CEO explicitly says that intelligence tools have changed what it means to build and run a company. Other large employers have announced tens of thousands of cuts in recent months. Some have downplayed the AI link. Block did not."
Block, the financial technology company behind Square and Cash App, announced layoffs of over 4,000 employees from its 10,000-plus workforce. CEO Jack Dorsey attributed the restructuring to artificial intelligence tools that enable smaller teams to operate more effectively. The company's stock jumped more than 20% in premarket trading following the announcement, with shares reaching nearly $69 after reporting a 24% increase in fourth-quarter gross profit. Dorsey explicitly linked the job cuts to AI capabilities, distinguishing Block from other companies that downplayed AI's role in recent layoffs. The company committed to supporting affected employees with various assistance measures.
Read at Fortune
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