Block Trades 40% of Employees for AI in Radical Restructuring

For years, Jack Dorsey preached radical minimalism, and now he’s applying that philosophy to his org chart. The CEO of BlockXYZ

, formerly Square, announced plans to nearly halve his workforce, claiming AI is “enabling a new way of working.” Markets rewarded the bold move with an 17% surge on Friday, with Dorsey believing “the majority of companies will reach the same conclusion.”

• The payments firm is set to slash 4K of its 10K employees — as CFO Amrita Ahuja says AI lets them “move faster with smaller, highly talented teams.”
• Despite an earnings beat and outlook raise, the layoffs come as Block’s Q4 EPS slipped to $0.65 — down from $0.71 reported last year.

Rise of the machines: Block isn’t alone in substituting headcount, as eBayEBAY

, AmazonAMZN

, and PinterestPINS

also pointed to AI when trimming staff. Dorsey predicts more layoffs within a year, adding he’d “rather get there … on our own terms than be forced into it reactively.” If he’s right, giants like SalesforceCRM

, ServiceNowNOW

, and WorkdayWDAY

could already be drafting their own minimalist manifestos. Then again, after years of overhiring, tech’s newfound passion may owe more to cleanup than philosophy.