Block, the fintech company founded by Jack Dorsey, announced significant layoffs affecting 40% of its workforce on Thursday. The move impacts numerous roles across the company, marking a substantial restructuring effort.

According to Dorsey, the company has experienced a dramatic increase in engineering efficiency, compressing weeks of work into a much shorter timeframe. This rapid progress, he suggested, is a key factor driving the workforce adjustments. While specific details about the areas experiencing the most significant cuts were not immediately released, the company indicated a broader strategic realignment.

Despite the widespread layoffs, Block remains actively engaged in hiring. Dorsey specifically mentioned the company's continued focus on recruiting artificial intelligence (AI) engineers. This signals a strategic shift towards incorporating AI technologies within Block's operations, even as the company reduces its overall headcount. Block's previous ventures include Square and Cash App, and the company operates in the digital payments and financial services space. The layoffs represent a significant change for the company and its employees, and the future strategic direction remains centered on technological innovation, particularly in the field of AI.