Oakland-based financial technology company Block is reducing its workforce by 40%, decreasing its employee count from over 10,000 to under 6,000, citing advancements in AI as the main reason. CEO Jack Dorsey emphasized that AI tools have transformed operational efficiency, allowing a leaner team to achieve more. This announcement has intensified concerns among tech workers, particularly software engineers, about job security amid rising AI integration. Though AI’s impact on job losses has been minimal—accounting for only 7% of layoffs this year—Block’s decision reflects a growing trend of companies reassessing workforce needs due to technological advancements. Critics have suggested that Block’s layoffs could exemplify “AI washing,” with executives attributing downsizing to AI rather than other factors. Despite these cuts, Dorsey reassured stakeholders of the company’s financial strength, as gross profits and customer numbers continue to grow. He predicts that many firms will follow suit in re-evaluating their workforce structures.
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