Block CEO Jack Dorsey lays off nearly half of his staff because of AI and predicts most companies will make similar cuts in the next year | Fortune

Block CEO Jack Dorsey announced the company is laying off nearly 4,000 employees, reducing its workforce by almost half, citing efficiency improvements from AI implementation. Dorsey stated that the intelligence tools being used, combined with smaller teams, are enabling a new, more efficient way of working. He predicted that most companies will reach the same conclusion regarding structural changes driven by AI within the next year, suggesting many are already late in adopting this trend. While acknowledging past overhiring during COVID, Dorsey emphasized that Block's business remains strong, with improving profitability attributed to AI. The stock market reacted positively to the news, with Block shares rising nearly 18% on investor optimism regarding productivity gains.

(Source：Fortune)