Svmuu News: Fintech company Block has announced a large-scale layoff plan. Co-founder Jack Dorsey stated that the company will cut nearly 4,000 jobs, reducing the total workforce from over 10,000 to fewer than 6,000 to foster a more streamlined, flat, and AI-centric organizational structure. Dorsey noted that while the company’s financial position remains strong and gross margins continue to grow, artificial intelligence and smart tools are profoundly transforming how the company operates, necessitating a comprehensive restructuring. He noted that while large-scale restructuring carries risks, maintaining the status quo is equally risky, and the company has conducted a comprehensive assessment of staffing needs. Unlike phased layoffs, Block has opted for a one-time, large-scale reduction in headcount to avoid the impact of prolonged uncertainty on employee morale. Affected employees will receive 20 weeks of base compensation plus additional severance based on length of service. Following the announcement, Block’s stock price rose by more than 20% in after-hours trading. The company closed at $54.53 that day, with a current market capitalization of approximately $31 billion; its stock price has fallen by about 16% over the past year.