Jack Dorsey’s payments giant Block will slash more than 4000 jobs – nearly half its global workforce – in what the company described as a deliberate pivot to becoming an “intelligence-native” business, sending shares surging more than 22 per cent in after-hours trading.
The cuts reduce Block’s global workforce from more than 10,000 employees to just under 6000, making it one of the largest AI-driven workforce reductions to date.
Block, which acquired Melbourne-founded buy-now-pay-later platform Afterpay for about $39 billion in 2022, has a significant presence in Australia, though the precise number of local employees affected remains unclear.
It comes after Australian tech outfit WiseTech Global this week cut 2000 roles – roughly a third of its workforce – citing AI-driven productivity gains, with chief executive Zubin Appoo pointing to advancements in models from Anthropic and OpenAI as a tipping point.
Australian employees of Block are not immune from the cuts, though the company did not say how many local staff would lose their jobs.
Dorsey told shareholders that repeated rounds of smaller lay-offs would be more damaging than acting decisively.
“A significantly smaller team, using [AI] tools, can do more and do it better,” he said in a letter to shareholders. “I don’t think we’re early to this realisation. I think most companies are late.”
The company reported adjusted earnings of 65 cents per share for Q4, with gross profit up 24 per cent year-on-year to $US2.87 billion. Block’s shares surged more than 25 per cent in extended trading after the announcement.
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David Swan is the technology editor for The Age and The Sydney Morning Herald. He was previously technology editor for The Australian newspaper.Connect via X or email.
