Odaily Planet Daily reports that fintech company Block announced a large-scale layoffs plan. Co-founder Jack Dorsey stated that the company will cut nearly 4,000 jobs, reducing the total number of employees from over 10,000 to less than 6,000, in order to promote a leaner, flatter, AI-centric organizational structure.
Dorsey said that although the company’s financial health is solid and gross profit continues to grow, artificial intelligence and intelligent tools are profoundly changing the way the company operates, necessitating a comprehensive restructuring. He noted that large-scale adjustments carry risks, but maintaining the status quo also poses risks. The company has conducted a thorough assessment of staffing needs.
Unlike gradual layoffs, Block has chosen to implement a one-time large-scale reduction to avoid long-term uncertainty affecting employee morale. Affected employees will receive 20 weeks of basic compensation plus additional compensation based on their years of service.
Following the announcement, Block’s stock price rose over 20% in after-hours trading. The company’s closing price that day was $54.53, with a current market capitalization of approximately $31 billion. Over the past year, the stock has declined about 16%.
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