Block Guts Workforce in AI Push

The user wants a "read more" expansion for a news card about Block's recent layoffs. I need to provide additional context, backstory, and facts in the style of a Twitter thread. This means 4-8 short, punchy paragraphs separated by blank lines. I must not repeat the information already in the card. I must not address the reader directly. I must use web search to find concrete facts, numbers, names, and context. No filler content. Based on the search results, I have a lot of information to work with. **Block Layoffs & Jack Dorsey's Rationale: - 4,000 out of 10,000 employees laid off. [- Dorsey's statement](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHdYtsG58olRg3Zw2z0tFb52vr32WauQ2o7B_PM-FMQdi2SiVG87AbwOOGLfkAxvyXxKC0xAtiuOrWV2Xn8ZD0Q3r88NHB0Nk7BEjtWQMdSqCb4HOikJOmOHqrv2kadgovhT_JWVQbZQ2UHi46ucAxYDeKnqZcv2fAd0kJUFtDo4ErDObE717sLtWo=): "Intelligence tools have changed what it means to build and run a company." [- He claims the decision](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQERosUUvXLAtnz3umX1qNZMlz0UzMegMMv-vOyxzmcbBlt0jI_0UZslb4SvLVl-USHsXoEeX7DbKs0zBeo1s42d9yzrE9EtmIvO2qLpMXLtwpyZ4vYwr3yBZeieinoKJ8vI9vxIeTd0GinYWLgwke0yzVsGWQPHEWsGpWL6Iw5OdXfSrJnFC59gEEwDHuDLTIlihpwqdg==) is proactive, not due to financial trouble, and that Block's business is strong. [- The company's stock](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHdYtsG58olRg3Zw2z0tFb52vr32WauQ2o7B_PM-FMQdi2SiVG87AbwOOGLfkAxvyXxKC0xAtiuOrWV2Xn8ZD0Q3r88NHB0Nk7BEjtWQMdSqCb4HOikJOmOHqrv2kadgovhT_JWVQbZQ2UHi46ucAxYDeKnqZcv2fAd0kJUFtDo4ErDObE717sLtWo=) surged over 20% after the announcement. [- Dorsey admitted to](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEWQjtsoHGiYL-FmWffVQ6fIn_gZ_BVr_PrIQQNo3YXjvdwJ1MrY_ph09cgR1AuRx3X5hxoFSpCXMnjyGrKnQ0B3_bJWK3coxP5ELB658r7QRNG2x9IhbSDP1LD7kCfk_hCtfSeYy4RgJ2rLomCY1Wz5nTN23e-) over-hiring during the pandemic but claimed this was corrected in 2024. [- Affected employees](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEFFg36xpEIPtvk9OfdS3l1h6MzV9_1oPlBIPjwoBTuRmt7RH3FzvMGjoL2bot1ZKHVazLKzxqT05EPJsLG3rf7-b2D-S-Q8J_MjrkNinnnl2s9Zg8SfjFL1ENFpjuua9b679BXHkscSxWfsOWzVkVr2T2UtUFt8mvhfyo4HEAMw2ccAGNfJoR8w4QEbbVpQMwZW1eYtF47MS_Z98f3oumO) will receive 20 weeks of salary plus tenure-based additions, equity vesting, health care, and a $5,000 transition payment. [- Block's Q4 2025 revenue](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQH3WJKq84vMPyB65cdCfawqroaXv-NfjE9gAGAKqpRPTKU0_hnmn4sEWOXxxuE2daBQ9QCFA3wyFr32p00uCzizy_-hY97M4YXF6_lwm0sfXCfR32xJQtvlFpopiv7zxk8T4kNa391VXyLvf791YsM_bO4owxStPRcu7qkJZur3rs335QmjBnaqZmnsaGgRDrc=) was $6.25 billion, with a gross profit of $2.89 billion. ["AI-Washing" Context](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGDpfv_iE584UNGLbl50b9um2AOEfoWekpFVi-qRdMhWzUoeJKCeoh1MuuNHCV0PU9Lj-AV5y85I0eRdnHZ4J7VDOvwpUT7AD3xFnp-8iK3qFBfgsfROd1_gWEqQD_cVeh6CqdZzzHvV2qdtzIRChoWGHrMrAwla4Ks9Wf7qOQu4Up1oRVuJsmvm7qz3hvfbm_B2r8M4YmmWvBqzJm-0bJ66y7peDs-wGs=):** - "AI-washing" is the term for blaming layoffs on AI to cover for other issues like over-hiring or mismanagement. - [Analysts suggest Block's](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEWQjtsoHGiYL-FmWffVQ6fIn_gZ_BVr_PrIQQNo3YXjvdwJ1MrY_ph09cgR1AuRx3X5hxoFSpCXMnjyGrKnQ0B3_bJWK3coxP5ELB658r7QRNG2x9IhbSDP1LD7kCfk_hCtfSeYy4RgJ2rLomCY1Wz5nTN23e-) layoffs are a mix of AI efficiency and cleaning up "corporate bloat" from pandemic-era hiring when the workforce tripled between 2019 and 2022. - OpenAI's CEO Sam Altman has called out companies for "AI washing." - Research suggests many companies announcing AI-related layoffs lack mature AI systems capable of replacing workers and are often making cuts in *anticipation* of future efficiencies. - Citing AI is seen as more investor-friendly than admitting to revenue drops or mismanagement. **eBay Layoffs & Broader Tech Trend: - eBay cut about 800 jobs, or 6% of its workforce. [- This is eBay's third](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHQTbqNU-bDSfRMgHoe0AGcvCAym4gsjsXJnXr29_uznIZ8HuZkb1XosqcYpvoTvdQd68QyZkcet1FjukgyuWkOsqRucc7XP3hEwThtLXlVEWTULKAKMjq_8fOyHU_5i6NqPuZ2prr3iZf9hCw9Lav8GG7BIwm_3G72Kh3bHDb4XCeQJjbvC_S10ts76ULDfVHSU4d5BOhD) round of layoffs in three years, following cuts of 500 in 2023 and 1,000 in 2024. [- eBay cited a need to](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFn_He44vLbAAWBdFk_jPLXDAgrK_sw5RoLo3e7TL3vi7zvtJxDGeK_qx12pAksUFfZgcgzC_glXovgCgDIg3uiQLLc_myaacDQiGAc7lr5Z-fC3kK4gRFbIbMS92ZoxybTHEY9XfZWeJKnO6sg6ENkjBtRmxv_5W7OEPddbr5M9w-yJxVas72mgxAbYkoscRvnyWYoAmgGFFNmypUrg0avCvilXg==) realign with strategic priorities and reinvest in the business, not AI. [- The cuts came shortly](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHQTbqNU-bDSfRMgHoe0AGcvCAym4gsjsXJnXr29_uznIZ8HuZkb1XosqcYpvoTvdQd68QyZkcet1FjukgyuWkOsqRucc7XP3hEwThtLXlVEWTULKAKMjq_8fOyHU_5i6NqPuZ2prr3iZf9hCw9Lav8GG7BIwm_3G72Kh3bHDb4XCeQJjbvC_S10ts76ULDfVHSU4d5BOhD) after eBay announced a $1.2 billion acquisition of the fashion app Depop. [- Other major tech companies](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEWQjtsoHGiYL-FmWffVQ6fIn_gZ_BVr_PrIQQNo3YXjvdwJ1MrY_ph09cgR1AuRx3X5hxoFSpCXMnjyGrKnQ0B3_bJWK3coxP5ELB658r7QRNG2x9IhbSDP1LD7kCfk_hCtfSeYy4RgJ2rLomCY1Wz5nTN23e-) like Salesforce, Amazon, and Pinterest have also cut thousands of jobs, sometimes citing AI as a factor. [- In 2025, over 1.2 million](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGe-MuRKYgxjmi4nkuCZDAREhOPYAPTaGZ2k29A9dfRolhTav9KUy3mf7SvWcsPCnsl06PtskbuFJHFOY5fqQDASZonuLvHkgA0Ipeq3P-rCqKHpt4uVZpArTf9VG82SNoJqUlBChot5oc4) job cuts were announced in the US, with AI cited in nearly 55,000 of them. Phoenix, OR Persona: - The user is interested in economic developments and business trends. The broader trend of tech layoffs and the "AI-washing" narrative are highly relevant. [The specific impact on](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEWU3QykURtNCApKgsd4zc46c0_xgh710CVq-xDB-8aDhCnjWZK35zc69VcChXLC6AuJ9dlDzbpNQ6a3c-_QP1W-jDnOJ4JjwBufTl6wTNZDZObkTpDd6nWDLPUV70ZsbrRH4rmWCDzcYcfF2iKL2itV6BuU1meNPAM2kSG85PJIoeWnqo184XtnEoWTYZjCaqlc2IxjWyqtXcKZBQ6urVWPBMCM5ECQscQDJ5Gvy3-ff6aROJDQ8ekG-n1c3T5LPtf9X1wQ5VH4A==) Phoenix is less clear from the search results, but the general economic impact on tech workers is covered. Plan for the response:** 1. Start with a punchy fact about the investor reaction to Block's news, linking it directly to Dorsey's AI justification. 2. Provide context on Block's recent financial performance and hiring history to add nuance to the "AI efficiency" claim. 3. Introduce the concept of "AI-washing" and how analysts view Block's move within this framework. 4. Broaden the scope to mention other companies like Salesforce that have used similar justifications for layoffs. 5. Detail the specifics of the eBay layoffs as a point of contrast – restructuring vs. explicit AI push. 6. Mention the scale of eBay's repeated cuts over the past three years to highlight the ongoing nature of this trend. 7. End with a broader statistic on the scale of tech layoffs to underscore the accelerating trend mentioned in the original card. This structure avoids repeating the card's content, provides new factual information in each paragraph, and follows the requested Twitter-thread style. It directly addresses the user's interest in business trends and economic developments.The market immediately rewarded Block's decision, with shares surging more than 20% after the announcement. CEO Jack Dorsey told investors the move wasn't due to financial trouble but because a "significantly smaller team, using the tools we're building, can do more and do it better." This restructuring comes despite Block beating Wall Street expectations in its fourth quarter, reporting $6.25 billion in revenue. The company's workforce had swelled from around 3,800 in 2019 to over 10,000 by 2025, a trajectory some analysts point to as evidence of pandemic-era bloat now being corrected. The term "AI-washing" has emerged to describe companies that cite artificial intelligence to justify cuts potentially caused by other factors, a phenomenon OpenAI CEO Sam Altman has acknowledged. Analysts suggest Block's move is a combination of real AI-driven efficiency and a necessary cleanup of this rapid expansion. This narrative isn't unique to Block. Salesforce CEO Marc Benioff previously stated he "needs less heads" due to AI's efficiency when his company cut about 4,000 jobs. Amazon and Pinterest have also cut tens of thousands of jobs while reallocating funds toward AI initiatives. Meanwhile, eBay's recent cut of 800 employees, representing 6% of its workforce, was framed as a move to reinvest and align with strategic priorities. The layoffs followed eBay's $1.2 billion acquisition of the secondhand fashion app Depop, aimed at capturing a Gen Z customer base. For eBay, this marks the third round of significant layoffs in as many years. The e-commerce giant previously cut 500 roles in 2023 and another 1,000 in 2024, citing a slowdown in post-pandemic spending and rising labor costs. These actions are part of a much larger trend. In 2025 alone, U.S. companies announced more than 1.2 million job cuts. While AI was cited as a reason in nearly 55,000 of those, the broader tech industry continues a cycle of restructuring that began with post-pandemic corrections.