Fintech company Block is reducing its workforce by nearly 40%, bringing staff numbers down to approximately 6,000 from a peak of over 10,000 during the pandemic. CEO Jack Dorsey attributes the reduction to the efficiency gains from AI, but the move also reflects a strategic shift as stablecoin payments begin to challenge traditional card-based systems. Stablecoins, which offer near-zero cost transactions, threaten to compress the fees that have historically fueled Block's growth. This shift is further accelerated by AI-driven shopping, which optimizes payment routes and reduces reliance on card networks. The company's latest workforce reduction, deeper than previous cuts, suggests a response to structural changes in the payments landscape rather than temporary market pressures. Investors responded positively, with Block shares rising over 23% in after-hours trading, although the stock remains significantly below its pandemic-era highs.