Block lays off nearly half of its employees due to AI, credit card stocks plummet

LootboxPhobia · 2026-02-27T19:52:44+00:00

Major credit card companies' stock prices fell sharply on Friday as investors worried about the impact of layoffs at payment company Block on the market. American Express dropped 6.5%, with the market paying more attention to potential white-collar unemployment issues, and overall sentiment being tense due to the possibility of large-scale layoffs caused by artificial intelligence.

LootboxPhobia

2026-02-27 19:52:44

Abstract generation in progress

Investing.com – On Friday morning, major credit card companies’ stocks fell sharply as investors assess the impact of payment company Block’s decision to cut nearly half of its staff amid AI reforms.

American Express (NYSE: AXP) dropped 6.5%, Synchrony Financial (NYSE: SYF) fell 5.7%, and Capital One Financial (NYSE: COF) declined 6.3%.

Brian Finneran, Managing Director at Truist, said, “This morning, the market is selling off any stocks related to credit. Professionals are paying more attention to American Express because it more directly reflects potential white-collar unemployment issues.”

The market has been concerned that AI-driven disruption could lead to large-scale layoffs and impact the financial system.

Earlier this week, a viral report by Citrini Research depicted a dystopian scenario of widespread unemployment triggered by AI, causing unease in global markets.

This article was translated with the help of artificial intelligence. For more information, please see our Terms of Use.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

1 Likes