Summary
The financial technology company Block is laying off more than 4,000 employees to focus on using artificial intelligence (AI) to improve its business operations. This decision by CEO Jack Dorsey caused Block's stock to rise sharply. AI is seen as a way to make the company more efficient and profitable.
Key Facts
- Block is laying off over 4,000 of its more than 10,000 employees.
- CEO Jack Dorsey stated that AI is a key reason for the layoffs.
- Block's share price increased by more than 20% in premarket trading after the announcement.
- The company's stock rose to nearly $69 in after-hours trading, up from $54.53.
- Block's fourth-quarter gross profit increased by 24% compared to the previous year.
- Block operates in the U.S., Canada, Europe, Australia, and Japan.
- Other companies like Amazon and UPS have also announced recent layoffs.
