Core Argument - The article warns of an impending "2028 Global Intelligence Crisis," suggesting that the success of AI may lead to economic disaster rather than prosperity [2][27]. Group 1: AI and Economic Impact - The rise of AI is leading to a "smart deflation" era, where companies cut high-salaried jobs to save costs, pushing displaced workers into low-wage gig markets, resulting in a significant overall income reduction [2][12]. - As income declines, consumer spending will shrink, potentially leading to a financial system collapse, where an abundance of goods cannot be sold because people cannot afford to buy them [2][12]. Group 2: Company Actions - Jack, co-founder of Block, announced a 40% workforce reduction, cutting the company from over 10,000 employees to fewer than 6,000, despite the business being profitable and growing [3][4]. - The decision to lay off 4,000 employees was framed as a necessary response to the changing landscape brought about by AI, which allows for more efficient operations with fewer staff [4][10]. Group 3: Future Employment Landscape - The article suggests that the success of AI does not equate to economic success for workers, as even profitable companies may still lay off employees due to increased efficiency [11][12]. - The transition of high-skilled workers into the gig economy could lead to a decrease in average wages, affecting overall consumer spending power [23]. Group 4: The 2028 Global Intelligence Crisis - The article presents a model where AI leads to the replacement of human income, resulting in a collapse of consumer spending, contrasting with previous technological revolutions that created new jobs [13][14]. - It introduces the concept of "Intelligence Displacement Spiral," where increased productivity from AI does not translate into increased income for workers, leading to a disconnect between production and consumption [15][26]. Group 5: Financial System Implications - The article predicts a potential "prime loan crisis" in 2028, where the financial system may face challenges due to the loss of income among previously high-earning individuals [20][26]. - The shift in income distribution, where profits from AI accrue to a small number of owners rather than workers, could lead to a situation where economic growth does not benefit the broader population [15][26].

European stocks are seen opening little changed on Friday as investors monitor the latest AI headlines and keep a close eye on Middle East tensions. U.S. fintech and digital payments giant Block said it's laying off more than 4,000 employees, or about half of its head count, as part of a restructuring to become "smaller", "flatter," and AI-first. Tech company Dell Technologies achieved record annual and quarterly revenue and said it expects very high sales from its AI servers this year, driven by increased ...

本周，有报道称Meta正计划于2026年下半年在其旗下平台整合稳定币支付功能，并且此次将采用更为审慎的策略，不再发行自有代币，而是通过与成熟稳 定币运营商合作，将美元挂钩的稳定币融入Facebook、Instagram和WhatsApp等应用，从而避免直接承担加密网络运营相关的监管合规负担。 若计划顺利推进，Meta有望借助逾30亿用户规模，推动稳定币在主流社交与支付场景的广泛应用。 Meta曾在2019年宣布推出Libra稳定币计划，旨在创建一个低成本、跨境支付系统，特别是针对全球数十亿未接入银行服务的人群。 该计划最初由一个名为 Libra协会的瑞士非营利组织管理，成员包括Visa、Mastercard、PayPal等大型公司。 Libra被设计为一种稳定币，其价值锚定于一篮子法定货币和政府债券， 以确保价格稳定，避免像比特币那样的波动性。 项目负责人David Marcus后来承认，Libra过于理想化，忽略了政治现实，导致项目在2022年1月正式关闭，剩余资产以1.82亿美元出售给加州银行 Silvergate。 促使Meta重启稳定币计划的最直接、最关键催化剂即是去年《GENUIS ACT》（天才法 ...

Block cut more than 4,000 roles as it shifts to an AI-led operating model.Block’s massive staff cuts dominated the news surrounding its fourth quarter earnings release and conference call Thursday (Feb. 26).By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS ...

White-collar workers, beware. CEO Jack Dorsey is departing from the classic tech layoff playbook — and it could be a sign of what's to come.In a post on X on Thursday, the billionaire said he's slashing nearly half Block's workforce, cutting its over 10,000-person staff to just under 6,000. He said that he is doing this despite the business being strong and profits growing. In tech's hardcore era, many companies have paired down teams through repeated rounds of layoffs. Dorsey's massive chop stands alone, h ...

Twitter co-founder Jack Dorsey is axing more than 4,000 employees at his fintech company Block — slashing the workforce by nearly half in what he called a necessary shift toward ‘intelligence tools.’Dorsey sent a letter to shareholders saying the company, which owns Square, Cash App and Afterpay, will reduce 10,205 staff to just under 6,00. 3 Jack Dorsey’s Block, which owns Square and Cash App, is cutting 4,000 jobs, or 40% of its workforce. Bloomberg via Getty Images 3 The company said it expects to in ...

Twitter co-founder Jack Dorsey is axing more than 4,000 employees at his fintech company Block — slashing the workforce by nearly half in what he called a necessary shift toward ‘intelligence tools.’Dorsey sent a letter to shareholders saying the company, which owns Square, Cash App and Afterpay, will reduce 10,205 staff to just under 6,00. 3 Jack Dorsey’s Block, which owns Square and Cash App, is cutting 4,000 jobs, or 40% of its workforce. Bloomberg via Getty Images 3 The company said it expects to in ...

Core Insights - Block CEO Jack Dorsey has warned about the impact of AI on employment, particularly emphasizing that many companies are late to realize its implications [1] - Block is transitioning to a "smaller, faster, intelligence-native company" by cutting approximately 40% of its workforce, which consists of 11,000 employees [1] - Dorsey highlighted that AI is significantly enhancing productivity within Block, with engineering output per engineer increasing by over 40% since September [4] Company Strategy - The company is streamlining operations due to identified "duplication" within its workforce, aiming to improve efficiency through AI [3] - Block is focusing on expanding its senior engineering talent specifically in AI, despite the overall reduction in workforce [4] - Dorsey predicts that more companies will adopt AI to drive efficiency gains, positioning Block ahead of this trend [3] AI Capabilities - Dorsey noted a significant leap in AI capabilities that occurred in December of the previous year, which has surpassed Block's internal tool, Goose, used for coding and repetitive tasks [2] - The company is leveraging AI tools that allow a smaller team to achieve more efficient and higher-quality work [2]

Block (NYSE:SQ) Q4 2025 Earnings call February 26, 2026 05:00 PM ET Speaker6Hi, everyone. Thanks for joining our fourth quarter 2025 earnings call. Today's call will be 45 minutes. We have Jack and Amrita with us today, along with Owen Jennings, our Business Lead, and Nick Molnar, our Sales and Marketing Lead for Block. We will begin this call with some short remarks before opening the call directly to your questions. During Q&A, we will take questions from conference call participants. We would also like t ...

In Brief PayPal may not be pursuing an acquisition, Semafor reported, citing people familiar with the matter. Earlier this week, Bloomberg reported that Stripe expressed interest in buying some or all of PayPal Holdings, which includes the flagship product PayPal and its services, as well as other companies like Venmo. Stripe declined to comment on the news.  But unnamed sources tell Semafor that the company has been working with bankers in preparation for a possible activist investor campaign or a hostile ...