Morning Minute: Jack Dorsey Slashes 40% of Block's Jobs Due to AI
Jack Dorsey’s Block announced it will cut 40% of its staff, reducing headcount from 10,200 to under 6,000, citing the rapid impact of AI on business operations. Dorsey stated this is not a sign of struggle—the company is performing well—but a proactive shift to leverage efficiency gains from AI, rather than phasing layoffs gradually. Block expects $450-500 million in restructuring costs, mostly in Q1. Following the announcement, Block’s share price rose significantly, signaling positive investor sentiment. The move comes at a time of heightened market sensitivity to AI-related restructuring, intensified by the recent Citrini article. Block’s actions may serve as a blueprint for other companies: downsizing, adopting AI, and reaping market rewards. The implications for crypto are unclear: less labor spending could funnel more money into assets like Bitcoin (bull case), or falling wages could reduce retail investment and prolong a market downturn (bear case). This marks a pivotal moment for companies adapting to AI and may set widespread precedent.
