Block, the digital payments company co-founded by Jack Dorsey, plans to cut its workforce by nearly 40%, reducing its employee count from 10,000 to just over 6,000. The decision, driven by advancements in artificial intelligence (AI), aims to enhance operational efficiency with smaller teams and intelligent tools. Dorsey emphasized that this transformation isn’t a reaction to troubles but a proactive move to leverage AI capabilities, already evident in features like real-time insights for Square sellers. He anticipates that many companies will follow suit in the coming year. Despite the layoffs, Block is focused on growth and innovation, expecting higher revenue and profit in 2023. Future investments will target senior AI engineering talent and enhancing marketing efforts. While the cuts are difficult, Dorsey encourages remaining employees to embrace this new direction, reinforcing the company’s commitment to rapid innovation and adaptation in the evolving digital landscape.
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