Thousands of workers hired by a major payment platform could suddenly lose their jobs after their CEO announced the company was downsizing due to AI acceleration.
Jack Dorsey, founder and former CEO of X, announced on Friday that his company Block would be axing thousands of employees with 24-hours notice.
Block, the US-based parent company of Afterpay and Square, is listed on the ASX and is understood to employ just over 1000 Australian staff.
It is unknown which employees in the global company will be impacted by the cuts.
'Today we're making one of the hardest decisions in the history of our company,' Mr Dorsey wrote in a lengthy social media post to X on Friday.
'We're reducing our organization by nearly half – from over 10,000 people to just under 6000.
'That means over 4000 of you are being asked to leave or entering into consultation.'
The executive then admitted that the company was downsizing, not due to difficulties but as a result of the accelerating use of artificial intelligence.
US-based Block, the parent company of Afterpay and Square which employs hundreds of Australians, will be axing 4000 jobs
'We're not making this decision because we're in trouble,' he said.
'Our business is strong. Gross profit continues to grow, we continue to serve more and more customers, and profitability is improving. But something has changed.
'We're already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company. And that's accelerating rapidly.'
Mr Dorsey said he was making the dramatic decision to avoid more gradual, repeated rounds of cuts that he said would be 'destructive to morale'.
He added that those affected would find out within 24 hours and receive their salary for 20 weeks.
They would also receive a week per year of tenure, equity vested through the end of May, six months of health care, their corporate devices, and US$5,000 to put toward whatever they need to help them in this transition.
'If you’re outside the US, you’ll receive similar support but exact details are going to vary based on local requirements,' he said.
Block has not yet elaborated on which areas of the company will be downsized and how it might impact different regions or countries.
Co-founder Jack Dorsey announced the job cuts on social media
It is also unclear whether Afterpay will face any significant job cuts.
The payment platform was founded in Sydney and now has its headquarters located in Melbourne's CBD.
Square made its start by manufacturing a range of global tap-and-pay terminals for both phones and bank card transactions.
The Daily Mail has contacted Block for comment.
It comes as WiseTech CEO Zubin Appoo revealed on Wednesday an 'AI transformation program' would result in about 2,000 jobs getting the axe this year.
Mr Appoo said it would be a 'phased headcount reduction, initially in product and development and customer service, by up to 50 per cent'.
He claimed the AI program would make the company more efficient.
Commonwealth Bank also announced this week their plan to lay off 300 Australians, despite recording a $5 billion profit just weeks ago.
