Technology
Block Announces 4,000 Layoffs; Shares Surge Over 24%
Washington, Feb 27: U.S.-based financial services company Block has announced that it will lay off 4,000 employees. CEO Jack Dorsey explained that AI tools have transformed the company’s operations, and their impact is already visible. He noted that even with fewer staff, these tools can deliver better results, and many companies are only now realizing this.
Dorsey described the layoffs as one of the most difficult decisions in the company’s history. He assured that affected employees will receive 20 weeks of pay and six months of health coverage, along with support in finding new jobs.
The announcement had a major effect on Block’s stock. Shares surged more than 24% in extended trading, reflecting investor confidence in AI-driven efficiency. Dorsey, one of Twitter’s (now X) co-founders, had established Square in 2009, which was renamed Block in 2021 to highlight its use of blockchain technology.