Twitter co-founder Jack Dorsey, now associated with Block, revealed plans to downsize the financial services company by 40% owing to advancements in artificial intelligence. The company intends to trim its staff from over 10,000 to under 6,000, with more than 4,000 employees facing layoffs or potential role changes. Affected staff will receive a severance package including 20 weeks’ salary, equity through May, six months of healthcare, corporate devices, and $5,000 for transition support.
In a social media post, Dorsey clarified that the decision was not due to financial struggles, highlighting the company’s strong business performance with growing gross profit, expanding customer base, and enhanced profitability. He attributed the layoffs to the evolving landscape where intelligence tools and leaner teams redefine traditional business operations.
Dorsey emphasized the preference for a single substantial layoff over multiple smaller cuts, citing the detrimental impact of repeated layoffs on morale, focus, and stakeholder trust. Industry experts predict that many white-collar jobs reliant on technology could be automated within the next 12 to 18 months. Other tech giants like Oracle and Amazon have also announced significant job cuts as part of their AI-driven strategies.
A recent report by PwC India forecasts that artificial intelligence could contribute around $550 billion to India’s economy by 2035, particularly in sectors like agriculture, education, energy, healthcare, and manufacturing.
