Jack Dorsey cuts nearly half of Block workforce amid major AI overhaul

Core Viewpoint - Block announced a significant workforce reduction, cutting nearly half of its employees to integrate artificial intelligence (AI) into its operations [1][2]. Group 1: Workforce Reduction - The layoffs will impact over 4,000 jobs, reducing the workforce from over 10,000 to just under 6,000 [2]. - CEO Jack Dorsey stated that the decision was made to allow the company to grow on its own terms rather than react to market pressures [2]. Group 2: Transition Support - Block will provide affected employees with 20 weeks of salary, one week per year of tenure, equity vested through the end of May, six months of healthcare, corporate devices, and $5,000 for transition assistance [5]. Group 3: Strategic Direction - Dorsey emphasized that the company is focusing on embedding intelligence at the core of its operations, which will fundamentally change how the company builds and runs its business [6]. - The company acknowledges that it over-hired during the COVID-19 pandemic and is now correcting its organizational structure [6]. Group 4: Market Reaction - Following the announcement of the layoffs, Block's shares surged by 17% during Friday morning trading and are up 22% over the past week, although they are down over 2% year to date [9].