NEW DELHI — Block, the financial services company founded by Twitter (now called X) co-founder Jack Dorsey, will slash roughly 40 percent of its workforce in a sweeping restructuring move driven by artificial intelligence-led changes in how the company operates.
Dorsey announced on social media platform X that Block will reduce its headcount from more than 10,000 employees to just under 6,000, with more than 4,000 workers either being laid off or moved into consultation-based roles.
Affected employees will receive “20 weeks’ salary plus one week per year of tenure, equity vested through the end of May, six months of health care, corporate devices and $5,000 to assist with the transition,” Dorsey said.
He emphasized that the decision was not prompted by financial distress. “We’re not making this decision because we’re in trouble. Our business is strong. Gross profit continues to grow, we continue to serve more and more customers, and profitability is improving,” he wrote.
According to Dorsey, the workforce reduction reflects a broader shift in how companies operate in the age of AI. He described the move as a response to rapid changes in how intelligence tools, combined with smaller and flatter teams, enable a “new way of working which fundamentally changes what it means to build and run a company.”
Dorsey said he chose to implement a single, decisive round of cuts rather than multiple waves of layoffs. “Repeated rounds of cuts are destructive to morale, to focus, and to the trust that customers and shareholders place in our ability to lead,” he said.
The announcement comes amid growing discussion within the technology sector about the impact of AI on white-collar jobs. Several industry leaders have suggested that many computer-based roles could be automated within the next 12 to 18 months.
Major technology companies have already begun reshaping their workforces around AI priorities. Oracle has reportedly outlined plans to cut between 20,000 and 30,000 jobs to expand AI data center capacity, while Amazon recently announced layoffs affecting 16,000 employees as part of its AI restructuring strategy.
A recent report by PwC India projected that artificial intelligence could contribute nearly $550 billion to India’s economy by 2035 across key sectors including agriculture, education, energy, healthcare and manufacturing. (Source: IANS)
