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Twitter co-founder Jack Dorsey says artificial intelligence is making Block, formerly point-of-sale merchant Square, more efficient, with a focus on smaller teams.

The cost is something some corporate execs might cheer on while sending employees into a tailspin: job cuts to the tune of 40% of Block’s workforce.

All told, about 4,000 employees lost their jobs in a sweeping restructuring effort outlined in his annual shareholder letter (1).

Dorsey didn’t point to declining profits as justification. In fact, Block reported strong margins and solid performance last year. Instead, Dorsey argued that AI tools now allow smaller teams to “do more and do it better.”

Investors approved. Block’s stock surged roughly 25% in after-hours trading following the announcement (2). Nevertheless, the move has sparked debate.

Some analysts question whether AI alone explains the decision, suggesting the framing may also serve as a strategic narrative for shareholders (3). This is referred to as “AI-washing.”

Block is among the first large public companies to openly frame mass layoffs as a direct result of AI-driven productivity gains, rather than as a result of declining revenue or economic stress.

If Dorsey’s reasons are true, layoffs are no longer just a response to economic downturns — they’ve become a strategic tool to reshape workforce dynamics and drive productivity.

And, if a profitable fintech giant can slash nearly half its workforce overnight, what does that mean for your job security?

As a follow-up: What can you actually do about it?

In an era of faster corporate restructuring, liquidity matters more than ever.

Most experts recommend keeping three to six months’ worth of living expenses in cash. That money should be three things:

1. Easily accessible

2. Separate from your checking account

3. Protected from market swings

Don’t build an emergency fund to chase returns; build it to buy time.

A great way to do that is with high-yield cash accounts. These accounts offer returns that would have seemed improbable just a few years ago, meaning your emergency fund doesn’t have to sit idle while inflation erodes its value.

A high-yield account like a Wealthfront Cash Account can be a practical place to grow your emergency savings while keeping funds accessible.

Wealthfront Cash currently offers a base variable APY of 3.30%, and new clients can receive a 0.75% boost for the first three months on up to $150,000 — for a total APY up to 4.05%. That’s more than 10 times the national deposit savings rate, according to the FDIC’s February report.

There’s no minimum balance or account fees, 24/7 withdrawals are available, and balances of up to $8 million are FDIC-insured through partner banks.

But storing cash alone isn’t a strategy. It’s insurance against risk, not a guarantee of growth.

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Sure, cash can buy you some breathing room, but lowering your monthly obligations can stretch it even farther. That gives you more control if your paycheck disappears or if you have to take time off for your health.

Start by reviewing recurring subscriptions, insurance premiums, streaming services and any expenses that have quietly crept up over time. Even small reductions can compound quickly.

Budgeting platforms like Monarch Money can help bring all your finances into one place.

Founded by former Mint product managers, Monarch Money allows users to connect bank accounts, credit cards, loans and investments under a single dashboard. That consolidation makes it a breeze to see “quiet creep” spending, which often goes unnoticed.

According to a 2024 study by C+R Research, American households spent approximately $220 per month on subscriptions and recurring services (4). Tracking those subs can be time-consuming, but Monarch Money automates much of that process by categorizing transactions and allowing users to create customized budgeting rules and alerts.

Another consumer spending study found Americans typically carry close to one unused subscription at any given time, costing more than $100 per year in wasted charges (5).

Those numbers may not sound catastrophic. But if you’re preparing for potential income disruption, reclaiming even $100 to $200 per year — or more — can extend your emergency runway.

Let’s say your monthly expenses are $6,000.

Suppose you’ve built a $30,000 emergency fund, which gives you five months of runway. But if you trim $800 per month from recurring expenses beforehand, your monthly burn drops to $5,200.

The same $30,000 now gives you nearly six months of runway. Rather than scrambling after a layoff hits, good budgeting allows you to run a financial stress test in advance while buying yourself more time.

Once you get control of your cash flow, you’ll also need to control the terms of your exit — if one comes.

Take a moment to dig up your employment agreement and review it.

After a layoff, you’re negotiating from a weaker position. Review your agreement while you still have leverage, and make sure you’re familiar with:

• Your company’s severance policies

• Health coverage continuation options (such as COBRA)

• Your eligibility for unemployment benefits

• Any 401(k) rollover rules

• The tax implications of stock compensations or RSUs

Finally, if your compensation includes equity, the timing of your exit matters.

Beyond benefits, cash reserves and budgeting, building resilience is another key point to surviving a layoff. If AI-driven productivity does create market volatility, or if corporate efficiency increasingly favors shareholders over workers, asset allocation becomes even more important.

That’s one reason some investors turn to physical gold as a foundational diversification tool.

While gold doesn’t generate income like stocks or bonds, it has historically been viewed as an inflation hedge and a buffer during uncertain and volatile periods.

Billionaire investor Ray Dalio has long argued that gold can serve as a hedge during periods of monetary uncertainty.

“If you don’t own gold, you know neither history nor economics,” he said in a 2012 speech at the Council on Foreign Relations CEO Speaker Series (6).

In his “All Weather” framework, gold is included as a diversification tool that is expected to perform differently from equities during certain economic cycles (7).

If you’re looking for gold exposure, Priority Gold is an industry leader in precious metals, offering physical delivery of gold and silver. Plus, they have an A+ rating from the Better Business Bureau and a 5-star rating from Trust Link.

If you’d like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping and free storage for up to five years. Qualifying purchases can also receive up to $10,000 in free silver.

To learn more about how Priority Gold can help you reduce inflation’s impact on your nest egg, download their free 2026 gold investor bundle.

In periods of economic transition, diversification often begins with assets not directly tied to corporate performance. Gold is one way some investors take that first step, but figuring out whether it’s right for you may need a professional’s opinion.

Workplace volatility makes long-term financial planning and investing more complicated than it ought to be.

A financial advisor can help you build a strategy that accounts for job instability, from tax planning to asset allocation to retirement projections. Finding the right advisor can be tough and time consuming.

That’s where Advisor.com can help. The platform connects you with an expert near you for free.

Advisor.com does the heavy lifting for you, vetting advisors based on track record, client ratios, and regulatory background. Plus, their network comprises fiduciaries, who are legally required to act in your best interests.

Just enter a few details about your finances and goals, and Advisor.com’s match making tool can connect you with a qualified expert suited for your needs based on your unique financial goals and preferences.

Finding the right advisor isn’t always easy — there’s no one-size-fits-all solution. That’s why Advisor.com lets you set up a free initial consultation with no obligation to hire to see if they’re the right fit for you.

Once you’ve got the right financial advisor in your corner, you can rest assured that your money isn’t going to disappear overnight due to a badly calculated decision.

When headlines scream about AI replacing workers, it’s easy to overreact. But sudden, emotionally-driven financial moves can be as ruinous as a layoff.

Avoid panic-selling your long-term investments or withdrawing funds from your retirement early, which can trigger nasty penalties.

Market adaptation is as real as technological shifts in the workforce. The key is positioning yourself so that job volatility becomes an inconvenience, not a catastrophe.

Dorsey’s announcement may mark a turning point in how companies talk about AI and efficiency. Whether it’s a structural shift or a convenient narrative, one thing is certain: Corporate loyalty is not a financial plan.

Preparation is.

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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

SF Gate (1); Reuters (2); Bloomberg (3); C+R Research (4); StudyFinds (5); CFR (6); Investopedia (7)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.