Block Fired 40% of its People. Wall St. Cheered. It’s Just the Start.
Summary
Block has reduced its workforce by 40%, signaling a strategic shift. Jack Dorsey warns that many CEOs may follow suit, emphasizing the need for a robust three-layer framework for boards to navigate potential challenges ahead.
Key Insights
What is Block, and why did it lay off 40% of its workforce?
Block is the company formerly known as Square, led by CEO Jack Dorsey. It reduced its workforce by approximately 40%, cutting 4,000 employees from over 10,000 to under 6,000, primarily to leverage AI tools for efficiency with smaller, flatter teams.[1][2]
Why did Wall Street cheer Block's layoffs, and what did Jack Dorsey predict?
Wall Street reacted positively, with Block's stock rising nearly 18% on Friday, as investors anticipated productivity gains from AI implementation. Dorsey predicted that most companies are late to this realization and that within the next year, the majority will make similar structural changes due to AI.[1]
Sources:
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