“Block”, the company operating in payment technologies and owner of the platforms “Square,” “Cash App,” and “Afterpay,” is cutting approximately 40 percent of its workforce.
Medianews.az reports, citing CCN, that the company's co-founder Jack Dorsey linked the decision to the rapid development of “intelligent tools” in a letter addressed to shareholders.
As a result of the layoffs, more than 4,000 employees will be dismissed, and the number of employees at the company will approach 6,000. Dorsey stated that smaller and professional teams can work more efficiently through artificial intelligence.
Chief Financial Officer Amrita Ahuja also noted in her statement that the application of artificial intelligence enables automation of tasks and more flexible management.
Dorsey emphasized on his social media account that the layoffs are not related to financial difficulties and stated that the company's profits are increasing. According to him, most companies will undergo similar structural changes within the next year.
Recently, concerns have increased regarding the impact of artificial intelligence in the technology sector. “Amazon,” “Meta,” “Microsoft,” and “Verizon” also carried out large-scale layoffs last year.
Following the decision, “Block's” shares rose up to 24 percent. The company announced that it will provide compensation and medical insurance packages to the dismissed employees.
Medianews.az