Block, Inc. (NYSE:XYZ) CEO Jack Dorsey said Thursday that advancements in artificial intelligence models and efforts to streamline operations drove the company’s choice to lay off nearly half its workforce.
Push Toward ‘Functionalization
During the company’s fourth-quarter earnings call, Dorsey was probed about the timing and rationale behind the neary 40% workforce reduction.
“We have been working very hard to functionalize the company. That’s a big part of what gives us more confidence in making this move,” he responded.
Dorsey said that Block effectively houses two separate companies—likely referring to Square and Cash App—with independent corporate structures, but with a lot of “duplication.”
“As we functionalized, it allowed us to act more like one company and recognize where there are common capabilities and common foundation, and we’re still doing a lot …