Article #250717

Shares in company increased over 20% as investors were encouraged by CEO’s assertion that cuts will drive profits

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Fintech company Block announced that it would be laying off 4,000 of its 10,000 employees because of gains in AI productivity.

“Intelligence tools have changed what it means to build and run a company,” Jack Dorsey, Block’s CEO, said in a letter to shareholders on Thursday. “We’re already seeing it internally. A significantly smaller team, using the tools we’re building, can do more and do it better. And intelligence tool capabilities are compounding faster every week.” Block is the parent company for online payment platforms such as Square and Cash App.