Block CEO Jack Dorsey (잭 도시) recently announced 40 percent layoffs and stressed that AI is fundamentally changing how companies operate. On Feb. 27, CNBC reported that AI can maximise corporate efficiency while also triggering large-scale layoffs.
Dorsey predicted that corporate structures are changing with the adoption of AI and that most companies will soon reach the same conclusion. Investors viewed it positively, and Block shares jumped 25 percent immediately after the announcement. Financial firms also viewed AI-driven efficiency positively, with Morgan Stanley raising its target price for Block and Goldman Sachs saying the move would lift Block into the top tier of productivity among fintech companies.
The layoffs will focus on the engineering division, and Block plans to use its internal AI platform, Goose, to replace technical staff.
Dorsey said repeated layoffs hurt morale and trust, explaining why the company carried out a large-scale round of cuts at once.
Chi-gyu Hwang
delight@d-today.co.kr