Summary
Jack Dorsey, the co-founder of Block, announced that the company will cut over 4,000 jobs, reducing its workforce from more than 10,000 to under 6,000 employees. The company is making this decision as it shifts towards using more artificial intelligence. The stock price of Block rose after the announcement.
Key Facts
- Block will cut more than 4,000 jobs, reducing its employee count by nearly half.
- The layoffs are part of a shift towards using artificial intelligence more in the company's operations.
- Affected employees will receive severance packages, including 20 weeks of pay and health care for six months.
- Block's stock price increased by about 25% after the layoff announcement.
- This is the second round of layoffs at Block this year; the previous round was in March 2025, affecting 900 jobs.
- The decision was not due to financial trouble but a strategic move to operate with smaller teams using AI.
- Dorsey communicated the layoffs via a public statement and planned internal communication for affected staff.
