Block cuts thousands of jobs as it embraces AI (www.bbc.com)

Jack Dorsey's company Block is cutting nearly 50% of its workforce, reducing its headcount from 10,000 to less than 6,000, due to the integration of artificial intelligence (AI) into its operations. Dorsey emphasized that advancements in AI are fundamentally transforming how companies are structured and managed, enabling smaller, more agile teams to accomplish tasks once requiring larger workforces. This move marks a significant shift in the tech industry as companies increasingly leverage AI tools for efficiency, mirroring recent layoffs by Amazon, Meta, Microsoft, and Google as they transition to AI-driven strategies. Block plans to spend up to $500 million on restructuring costs as it embraces this new AI-centric model, a decision underscored by a strong demand for its products, which has positively impacted profits. The announcement has resulted in a 20% rise in Block's shares in after-hours trading, signaling investor confidence in this strategic pivot. While job loss due to AI automation raises concerns about the future job market, some analysts argue the threat may be overstated, suggesting that many companies are still adapting to these rapid technological changes. Dorsey believes the shift towards AI is just beginning, indicating further transformations are ahead in how businesses operate.