Twitter co-founder Jack Dorsey’s company Block is going to lay off more than 4,000 tech professionals. Dorsey recently announced this on X and said that the company will lay off more than 4,000 employees. This is equal to almost half of the company’s employees. This decision has been taken amidst the rapidly growing era of Artificial Intelligence (AI). Meanwhile, due to Jack Dorsey’s announcement, Block’s shares rose by 27% after the market opened.
Dorsey said in the statement, intelligence tools have changed the way companies are built and run. We are already seeing this within our company. Even small teams can do more and better work with the help of these tools. He said, I don’t think we understood this quickly. I believe that most companies are late in understanding this.
Most difficult decision for the company: Dorsey
Dorsey wrote on the social media platform X that he has taken the most difficult decision in the company’s history. He also clarified that this decision has not been taken due to any problem. Dorsey said, our business is strong. Gross profit is continuously increasing. We are serving more customers and profits are also improving. But something has changed. We are seeing that the intelligence tools we are creating and using are providing new ways of working together in smaller and simpler teams. It is completely changing the way companies are run and is growing rapidly.
Employees will get 20 weeks salary
Dorsey said that instead of making small layoffs several times, the company decided to make big layoffs all at once. He said, frequent layoffs weaken employee morale, focus and the confidence of customers and investors. I think it is better to take a clear and strong decision now rather than gradually reducing the number of people. Dorsey said that the employees who will be retrenched will be given 20 weeks’ salary. Apart from this, according to the number of years he has worked in the company, he will also get one week’s additional salary for every year. They will also be given six months of health care, company-provided devices, and $5,000 to help them meet their needs during this transition.
When was the company started?
This company was started by Dorsey in 2009 under the name Square. In 2021, the company was renamed Block to reflect its increasing focus on blockchain technology. The company has said that this restructuring will cost it approximately 450 million to 500 million dollars. The block reported adjusted profit of 65 cents a share for the quarter ended Dec. 31, up from 47 cents a year earlier.
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