More than 4,000 employees were laid off from Block Inc., according to information provided by CEO Jack Dorsey, who stated that this is part of a radical restructuring to transform the firm into an “AI-first” entity. The CEO justified the layoffs by claiming that AI tools are revolutionizing the company’s operations, aiming for a smaller, flatter organization.
This workforce reduction occurs amidst a period of growth for the company, with gross profits and Bitcoin revenue nearing $2 billion. The market impact was immediate, with Block’s shares surging more than 20% after hours, demonstrating institutional backing for operational efficiency and the reduction of fixed costs.
The market will closely monitor Block’s ability to integrate these “intelligence tools” without compromising its growth in the fintech sector. Investors will be watching to see if this technological focus compensates for the loss of 10% of its workforce and successfully stabilizes its $31 billion market capitalization against current volatility.
Source:https://x.com/jack/status/2027129697092731343
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