Group 1 - Block's stock surged by as much as 20% after CEO Jack Dorsey announced plans for significant layoffs and a full embrace of AI tools, with over 4,000 employees to be laid off, representing about 40% of its workforce [1][5] - Dorsey emphasized that intelligence tools have transformed company operations, allowing a smaller team to achieve more efficiency and effectiveness, predicting that many companies will adopt similar structural changes in the near future [2][3] - Block's fourth-quarter earnings report showed a gross profit increase to $2.87 billion, marking a 24% rise compared to the same quarter the previous year [4] Group 2 - The announcement of layoffs has raised concerns about the impact of AI on the job market, with other major companies also linking layoffs to AI adoption, indicating a broader trend in the industry [6][10] - Dorsey anticipates that more companies will follow Block's lead in making significant layoffs due to advancements in AI, suggesting a shift in how businesses operate [11]
Block shares spike 20% after Jack Dorsey orders sweeping layoffs to ride AI wave
New York Post·2026-02-27 20:29