Fintech company Block lays off 4,000 of its 10,000 staff, citing gains from AI
> Shares in the financial technology company Block soared more than 20% in premarket trading Friday after its CEO announced it was laying off more than 4,000 of its 10,000 plus employees, reconfiguring to capitalize on its use of artificial intelligence.
> “The core thesis is simple. Intelligence tools have changed what it means to build and run a company,” Jack Dorsey said in a letter to shareholders in Block, the parent company to online payment platforms such as Square and Cash App. “A significantly smaller team, using the tools we’re building, can do more and do it better,” he said.
> Dorsey’s comments explicitly naming AI as a key driver behind the move were also posted on X, or Twitter, a company he co-founded. The assertion that the job cuts will add to Block’s profitability and efficiency led investors to jump in and buy, analysts said. https://apnews.com/article/block-dorsey-layoffs-ai-jobs-18e00a0b278977b0a87893f55e3db7bb #Fintech #Block #financialtechnology #AI #Square #JackDorsey #layoffs #artificialintelligence
