Daijiworld Media Network – San Francisco

San Francisco, Feb 27: Jack Dorsey-led Block, Inc. on Thursday announced it will lay off more than 4,000 employees — nearly half of its workforce — as the company restructures operations amid the rapid rise of artificial intelligence tools.

In a statement and a post on X (formerly Twitter), Dorsey described the move as “one of the hardest decisions in the history of our company,” while emphasising that the decision was not driven by financial distress.

“Our business is strong. Gross profit continues to grow, we continue to serve more and more customers, and profitability is improving. But something has changed,” he said.

Dorsey noted that advancements in “intelligence tools” are transforming how companies are built and managed. “A significantly smaller team, using the tools, can do more and do it better,” he said, adding that most companies may be late in recognising this shift.

The fintech firm, co-founded by Dorsey in 2009 as Square and rebranded to Block in 2021 to reflect its broader blockchain focus, said it opted for a single, deep round of job cuts rather than multiple smaller layoffs over time.

“Repeated rounds of cuts are destructive to morale, focus, and trust. I’d rather take a hard, clear action now and build from a position we believe in than manage a slow reduction of people toward the same outcome,” Dorsey stated.

The company expects to incur approximately $450 million to $500 million in restructuring charges. Affected employees will receive 20 weeks of salary along with an additional week’s pay for every year of tenure.

Block reported an adjusted profit of 65 cents per share for the quarter ended December 31, up from 47 cents in the same period a year earlier, underscoring its improving financial performance despite the sweeping workforce reduction.