"A significantly smaller team using the tools we're building can do more and do it better. And intelligence tool capabilities are compounding faster every single week. Something happened in December last year where the models just got an order of magnitude more capable and more intelligent."
"I don't think we're early to this realization. I think most companies are late. AI is dramatically accelerating work inside Block. Dorsey predicted more companies will follow suit, using AI to drive efficiency gains. Block is moving ahead of a trend that all companies will eventually embrace."
"Output per engineer is up by more than 40% since September thanks to AI coding tools. Engineering work that would have taken weeks now takes a fraction of the time. Block had a lot of duplication that needed to be streamlined through intelligence-native operations."
Block CEO Jack Dorsey announced a 40% workforce reduction, cutting approximately 4,400 employees from the company's 11,000-person workforce. Simultaneously, Block is transitioning to an 'intelligence-native' company model leveraging AI tools to dramatically boost efficiency. CFO Amrita Ahuja reported that engineering output per employee has increased over 40% since September through AI-powered coding tools. Dorsey attributed this shift to a significant leap in AI capabilities that occurred in December, making models substantially more intelligent. He warned that most companies are late to recognize AI's transformative impact on employment and productivity, predicting that all companies will eventually adopt similar efficiency-driven strategies. Despite layoffs, Block continues hiring senior AI engineers to support its new operational approach.
#ai-workforce-transformation #productivity-gains #corporate-restructuring #intelligence-native-strategy #employment-impact
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