Jack Dorsey just laid off 40% of staff. He said he's still hiring AI engineers. (www.businessinsider.com)

Jack Dorsey's fintech company Block has announced a substantial reduction of its workforce, laying off 40% of its approximately 10,000 employees. This move comes as Block experiences a transformation driven by AI technologies, which Dorsey claims have drastically improved productivity—evidencing a 40% increase in production code shipments per engineer. He highlighted that tasks previously taking weeks can now be completed in a fraction of the time, enabling the company to operate with smaller, more efficient teams. Despite the layoffs, Dorsey remains committed to investing in AI talent, stating that Block will continue hiring senior AI engineers to enhance its engineering and product capabilities. This emphasizes the growing significance of AI in reshaping workforce dynamics, as businesses adapt to new operational efficiencies. The decision reflects a broader trend in the AI/ML community, where companies are harnessing machine learning to automate processes and maximize productivity, even as they navigate the complexities of workforce changes and increasing employee workloads.