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Psychiatrist Warns AI Job Losses Are Fueling Chronic Mental Health Crises

Block CEO Jack Dorsey cited AI-driven automation for cutting 40% of staff, with more than 4,000 laid off and severance packages of at least 20 weeks offered.

  • Block's mass layoff last week cut more than 4,000 jobs, with management citing recent AI advances as the reason for restructuring.
  • Encouraging staff to adopt AI, executives said they reviewed current tools and applied them to reshape operations, prompting the restructure over the last year.
  • Laid-Off employees received severance of at least 20 weeks while Kenji, former Block machine learning engineer, described shock then calm, and Block reported almost $3 billion profit last quarter.
  • Industry analysts warn waves of layoffs will continue over several years with persistently low hiring, as industry executives including Dorsey adopt leaner AI-centered teams.
  • Since last week's announcement critics argue Block may be correcting pandemic-era hiring, while observers warn white-collar professionals face job risks from machine learning and large language models.
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absbehavioralhealth.com broke the news in on Tuesday, January 28, 2025.
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