Jack Dorsey cuts 40% of workforce, continues hiring AI engineers

Jack Dorsey indicated that he's still recruiting for his fintech company Block — even after recently reducing its staffing by 40%.

The cofounder shared during an earnings discussion on Thursday that he anticipates adding more skilled AI engineers to the group. 

Following trading hours, the company's shares rose nearly 23% as of 7pm Eastern Time.

On Thursday, Dorsey informed employees via a memo that Block would decrease its headcount from 10,000 to "just shy of 6,000." 

He cited AI for bringing about "a new mode of operation" with "leaner, more streamlined teams."

"Our decision isn't driven by necessity. Our operations are robust. Our gross profit is on the rise, our customer base is expanding, and our profitability metrics continue to improve," Dorsey mentioned in the communication. "But there's been a shift."

During an earnings call on Thursday, Dorsey mentioned that AI tools have bolstered the company's output, leading to a 40% boost in production code issued per engineer since September.

"We've experienced situations where engineering endeavors previously requiring weeks could now be resolved by a small squad in notably less time using advanced coding tools," he commented.

Despite the job cuts, Dorsey emphasized during the call that Block plans to keep investing in hiring.

"We foresee significant potential to invest in our workforce, continue hiring, and maintain a top-tier team to fulfill our customer commitments; ultimately, we aim to onboard additional senior AI engineering experts to further enhance our engineering prowess and product offerings," he pointed out.