What’s Happening? 4000 Employees Fires, Stocks Go Up!

Something pretty significant is happening in the global job market as companies have started to fire their employees at an aggravated pace. Here we have another one such incident involving a leading company and let us have a look at the story.

Financial technology company Block Inc. has announced that it is cutting more than 4,000 jobs across the company. This is one of the biggest layoffs in its history. The decision was taken by CEO Jack Dorsey, who said the move is part of a major restructuring plan.

The company explained that the layoffs are not because of losses. In fact, Block is still financially stable.However, the company wants to become leaner and more efficient. A big reason for this decision is the growing use of artificial intelligence. According to Dorsey, who founded Twitter earlier, AI tools are now able to handle many tasks that were earlier done by employees. Because of this, the company feels it can operate with a smaller team.

Employees who are losing their jobs will receive compensation. Reports say affected staff will get several weeks of salary as severance pay, along with other benefits depending on their service period and country.

After the announcement, the company’s stock price went up sharply. Investors seem to believe that the restructuring and focus on AI will help the company grow faster in the future.

Industry experts say more companies may take similar steps as AI technology continues to develop and change the workplace.