Block, founded by Twitter’s Jack Dorsey, recently announced significant layoffs, reducing its workforce from over 10,000 to under 6,000, attributing the cuts to the transformative impact of artificial intelligence (AI) on business operations. Dorsey clarified that the motivation wasn’t financial distress but a shift towards streamlined, AI-driven workflows that enhance productivity. This trend is evident across multiple industries, with AI responsible for approximately 55,000 U.S. job cuts in 2025. Companies like Salesforce and Microsoft have also reduced headcounts as they integrate AI solutions. While some labor economists caution against viewing AI as a direct replacement for jobs, Block’s approach indicates a proactive transition towards an “AI-first” business model. The decision to cut jobs now rather than in phases reflects a desire to maintain morale and trust among remaining employees. Block aims to redefine its operations with AI at the core, signaling a significant shift in corporate workforce strategies.
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