US fintech company Block has announced plans to lay off approximately 4,000 employees, which constitutes nearly half of its current workforce. This strategic move is part of the company's bold bet on artificial intelligence (AI) as a means to boost labor productivity. The news of this significant restructuring sent ripples through the financial markets, resulting in a remarkable 22% surge in Block's stock price during after-hours trading.

Since the beginning of 2024, Block has been grappling with subpar stock performance. In response, the company has been actively adjusting its business model and staffing levels. Simultaneously, it has been channeling substantial resources into the research and development of AI tools, with a particular focus on its proprietary tool, Goose. Company founder Jack Dorsey has expressed his conviction that intelligent tools are revolutionizing the way companies are established and managed. He believes that these tools empower smaller teams to achieve more, delivering higher-quality work with greater efficiency.