Block Plans To Replace Nearly Half Its Workforce with AI - Stock Rallies

Block Inc. (NYSE:XYZ) shares rallied in Thursday's extended trading after the company released its fourth-quarter earnings report and announcing massive headcount reductions.

Here's a look at the details from the report   

• XYZ stock is moving.

The Details: Block reported quarterly earnings of 65 cents per share, in line with the Street estimate, according to data from Benzinga Pro.

Quarterly revenue came in at $6.25 billion which missed the consensus estimate of $6.28 billion.

Block also announced massive 40%+ headcount reductions.

“Today we shared a difficult decision with our team. We’re reducing Block by nearly half,
from over 10,000 people to just under 6,000, which means that over 4,000 people are
being asked to leave or entering into consultation,” CEO Jack Dorsey said in a letter to shareholders.

“The core thesis is simple. Intelligence tools have changed what it means to build and run a
company. We’re already seeing it internally. A significantly smaller team, using the tools
we’re building, can do more and do it better. And intelligence tool capabilities are
compounding faster every week,” Dorsey added.

XYZ Stock Price: According to data from Benzinga Pro, Block stock climbed 22.65% to $66.88 in Thursday's extended trading.  

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