"The core thesis is simple. Intelligence tools have changed what it means to build and run a company. A significantly smaller team, using the tools we're building, can do more and do it better."
"For years, we have debated whether AI would dent jobs at the margin. Now we have a public case study in which the CEO explicitly says that intelligence tools have changed what it means to build and run a company. Other large employers have announced tens of thousands of cuts in recent months. Some have downplayed the AI link. Block did not."
Block, the financial technology company, announced layoffs of more than 4,000 of its 10,000-plus employees, with CEO Jack Dorsey explicitly attributing the restructuring to artificial intelligence capabilities. Dorsey stated that intelligence tools have fundamentally changed how companies operate, allowing significantly smaller teams to accomplish more with greater efficiency. The announcement drove Block's stock price up more than 20% in premarket trading and nearly 5% in regular trading, reaching approximately $69 in after-hours trading. The company reported strong fourth-quarter results with gross profit jumping 24% year-over-year. Analysts noted Block's explicit connection between AI and job cuts distinguishes it from other technology companies that have announced layoffs without directly linking them to artificial intelligence.
Read at ABC7 San Francisco
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