Block lays off 4,000 workers nearly half its staff citing AI

Block plans to lay off about 4,200 workers. The cuts represent just over 40 percent of the company's staff. Chief Executive Jack Dorsey detailed the move in an employee memo. The memo centered on artificial intelligence. Dorsey wrote that AI is changing how the company works and what it means to be a company. He stated that 100 people plus AI equals 1,000 people. Dorsey described AI as destiny rather than a tool. The memo said intelligence tools have changed what it means to build and run a company. He added that a smaller company has no excuse for being slow and will decide faster and ship faster. Dorsey acknowledged that the company over-hired during the COVID period. He said he built two separate company structures for Square and Cash App rather than one. Block shares gained 22 percent after the announcement.