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Block announced Thursday that it will cut nearly half its workforce as it reorganizes the payments company. Artificial intelligence (AI) Throughout the entire business.
The layoffs will affect more than 4,000 jobs at the company and its CEO. jack dorsey He suggested that the company was moving forward with one large round of layoffs, rather than a series of smaller layoffs, to give the company more room to grow as it adapts to the age of AI.
Dorsey explained the decision in a series of posts on X, the social media platform he led when it was formerly known as Twitter, saying he made the decision not because Block was in financial trouble, but because the reduced headcount “gives us the room to grow the business the right way, on our own terms, rather than constantly reacting to market pressures.”
In a memo, he said the job cuts were “one of the most difficult decisions in our company’s history. We are cutting our organization by almost half, from more than 10,000 people to just under 6,000 people. This means more than 4,000 people will be asked to leave or enter into discussions.”
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Jack Dorsey said the layoffs would put Block on a better path to growth. (Marco Bello/AFP via Getty Images)
block provides affected workers Dorsey said $5,000 will be donated for 20 weeks of salary, one week of tenure per year, stock vesting by the end of May, six months of medical expenses, corporate devices and anything else needed to help with the transition.
“The intelligence tools we are creating and using, combined with smaller, flatter teams, are enabling new ways of working that are fundamentally changing what it means to start and run a company, and it’s rapidly accelerating,” Dorsey said.
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| ticker | safety | last | change | change % |
|---|---|---|---|---|
| XYZ | Block Co., Ltd. | 63.68 | +9.08 |
+16.63% |
He went on to say that Block is “built with intelligence at the heart of everything we do: how we work, how we create, and how we serve our customers.”
In a follow-up post, Dorsey said the company “overhired during the coronavirus pandemic because I accidentally created two separate company structures.Square & Cash App) 1 and fixed it in mid-2024. But this takes away all the complexity that we have been working on through lending, banking and BNPL. ”
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Dorsey said the mistake was made because Square and Cash App are structured differently within Block. (Matt Crossick/PA Image, Getty Images)
Block stock soared after the company announced that nearly half of its employees would be laid off. AI rebalanceup 17% in Friday morning trading.
The company’s stock is up 22% in the last week, but is down more than 2% since the beginning of the year.
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