Australian software company Block Inc has laid off 40 percent of its workforce, with executives pointing to AI automation as a key factor.

The ABC reports this offers a sobering look at how AI is already reshaping Australia's tech sector. Mate, AI displacement isn't coming - it's here. Block's 40 percent cut is one of the most dramatic examples yet.

Block announced it was cutting nearly half its staff in a restructure explicitly tied to AI capabilities. According to executives, AI tools can now handle many coding, testing, and project management tasks that previously required human workers. The layoffs weren't due to the company failing - Block reported it's maintaining similar project output with a much smaller workforce thanks to AI productivity gains.

That's both remarkable and terrifying. The company didn't shrink because it was struggling - it shrunk because it figured out how to do the same work with fewer people.