Financial technology company Block announced significant layoffs, cutting over 4,000 employees from its workforce. CEO Jack Dorsey stated that the company is reconfiguring to capitalize on its use of artificial intelligence. "A significantly smaller team, using the tools we’re building, can do more and do it better," Dorsey said in a letter to shareholders.
The announcement drove Block's shares up more than 20% in premarket trading. The company, parent to platforms like Square and Cash App, reported a 24% jump in fourth-quarter gross profit year-over-year. Analysts noted that Block explicitly named AI as a driver for the job cuts, distinguishing it from other companies announcing layoffs.
Block, founded in 2009 and based in San Francisco, operates globally. Dorsey outlined support measures for laid-off employees. The company's move follows a trend of recent layoffs across major American corporations.