US EditionBlock shares soar 20% as company slashes workforce by nearly half
Block is reducing its workforce by 40%, cutting over 4,000 jobs to focus on AI-driven efficiency, with engineer output up more than 40%, the CFO said.
- On Thursday, Block Inc. shares rallied in extended trading, climbing 22.65% to $66.88 after releasing fourth-quarter earnings and announcing massive headcount reductions.
- Facing restructuring, Block announced 40%+ headcount reductions, cutting from over 10,000 to just under 6,000, affecting over 4,000 employees, CEO Jack Dorsey said.
- Report details include EPS of 65 cents per share, in line with the Street estimate, and revenue of $6.25 billion, which missed the $6.28 billion consensus.
- Company leadership described the decision as difficult, stating 'Today we shared a difficult decision with our team' and citing a smaller team using new tools and faster-growing intelligence capabilities.
- Amid the cuts, Block emphasized a shift to intelligence-driven operations, with executives noting 'We're already seeing it internally' and saying intelligence tools change how a company builds and runs.
182 Articles
182 Articles
AI is key driver behind layoffs at fintech company Block, CEO says
Shares in the financial technology company Block soared more than 20% in premarket trading Friday after its CEO announced it was laying off more than 4,000 of its 10,000 plus employees, reconfiguring to capitalize on its use of artificial intelligence.
Oakland-Based Fintech Block Lays Off Nearly Half Its Staff, Because of AI
It could be the first of many canaries in this coal mine, but Block, which operates the ubiquitous Square point-of-sale systems as well as CashApp and other enterprises, announced a mass layoff on Thursday. And CEO Jack Dorsey is making no secret that this is about AI supplanting the need for human workers.Block announced a layoff of 40% of its staff, or around 4,000 of its 10,000 workers, with CEO Jack Dorsey promising investors an even leaner …
Jack Dorsey's Block Cuts 40% of Workforce as AI Reshapes Company
Block, Twitter founder Jack Dorsey's fintech company, announced plans Thursday to eliminate approximately 4,000 positions, representing 40 percent of its total workforce, as AI capabilities prompt a fundamental restructuring of how the company operates.
Jack Dorsey nukes 40% of Blocks staff because AI
A tweet from Jack Dorsey informs his staff and the world that while the company is profitable and growing, he feels the need to let 40% of the 10,000 workers go because AI will replace them sooner or later. Rather than make the shift smoothly, Dorsey seems to be doing some sort of rip off the bandaid act to a business that wasn't wounded. — Read the rest The post Jack Dorsey nukes 40% of Blocks staff because AI appeared first on Boing Boing.
Coverage Details
Bias Distribution
- 59% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
