Block announces major workforce reduction of 4,000 positions amid AI transformation
Block's co-founder Jack Dorsey has announced the payments firm will eliminate over 4,000 positions as the company undergoes an AI-focused organizational transformation.
Block, the payments firm led by Jack Dorsey, is set to eliminate more than 4,000 positions from its workforce, with the company's co-founder attributing the decision to the swift advancement of artificial intelligence technology.
"We're already seeing that the intelligence tools we're creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company, and that's accelerating rapidly," wrote Dorsey in a letter to the company, which he shared on X.
"I had two options: cut gradually over months or years as this shift plays out, or be honest about where we are and act on it now. I chose the latter. Repeated rounds of cuts are destructive to morale, to focus, and to the trust that customers and shareholders place in our ability to lead," he added.
Employees impacted by the layoffs will continue to receive their salary for a period of 20 weeks, along with an additional week for each year they've worked at the company, six months of healthcare coverage, their company-issued devices, and $5,000 in financial assistance to support their transition into new employment, Dorsey stated.
Earlier this month, Bloomberg reported that approximately 10% of Block's employee base could face elimination through annual performance reviews, forming part of a broader organizational restructuring initiative.