Block Inc slashes 40% of its staff as Jack Dorsey pushes ‘smaller, flatter’ AI strategy

Block Inc. announced it is laying off nearly 4,000 employees, approximately 40% of its staff, as CEO Jack Dorsey drives a strategic shift toward becoming an "AI-first" company that is "smaller" and "flatter."

Dorsey stated that while the fintech company is financially strong, this large, immediate reduction was necessary to avoid prolonged uncertainty, emphasizing that standing still carries risk. Affected employees will receive 20 weeks' pay plus one week per year of tenure. This move follows a previous report that the company was considering cutting up to 10% of its workforce and comes about a year after a layoff of over 900 employees.

Following the announcement, Block's stock surged over 20% in after-hours trading. In its last reported quarter, Block generated nearly $2 billion in bitcoin revenue.

(Source：The Block)