Block Lays Off 40% of Staff Citing AI. CEO Dorsey Says Other Firms Will Make Similar Moves.

Core Insights - The CEO of Block, Jack Dorsey, announced significant layoffs of over 4,000 employees, nearly half of the company's workforce of 10,000, citing advancements in artificial intelligence as a transformative factor in business operations [2][4] - Despite a strong performance in 2025, Block's restructuring aims to integrate AI more deeply into its operations, with Dorsey suggesting that many companies will follow suit in making similar workforce reductions [2][4] - The tech industry is experiencing widespread layoffs, with nearly 30,000 job losses reported across 45 tech companies this year, driven in part by the adoption of AI technologies [5][6] Company-Specific Developments - Block's stock saw a significant increase of 15%, peaking at a 21% rise following the layoff announcement, indicating market optimism despite the job cuts [3][6] - Other tech companies, including eBay, Salesforce, Workday, Zillow, and Amazon, have also announced layoffs recently, with AI being a common factor cited for these decisions [3][4] - Dorsey emphasized that a smaller workforce would allow Block to innovate and develop new products more rapidly, positioning the company to better leverage AI tools [4]