Jack Dorsey’s Block Cuts 4,000 Jobs in Massive AI Pivot

Block is laying off nearly 40% of its workforce, over 4,000 employees, in a strategic pivot to AI-driven operations. The move is not a result of financial trouble but aims to create smaller, more efficient teams powered by artificial intelligence.

In a dramatic move reflecting the rapid transformation of the tech industry, Block Inc., led by Jack Dorsey, has announced the layoff of more than 4,000 employees—nearly 40% of its global workforce. The decision, one of the largest workforce reductions in recent tech history by proportion, comes as the company pivots aggressively toward artificial intelligence-driven operations.

The layoffs will reduce Block’s headcount from over 10,000 employees to under 6,000, marking a significant restructuring of the fintech giant behind popular platforms like Square and Cash App. Dorsey clarified that the decision was not driven by financial distress but by a strategic shift in how modern companies operate. He emphasized that “intelligence tools,” including AI systems, are fundamentally changing productivity, enabling smaller teams to achieve more efficient outcomes.

Interestingly, the job cuts come at a time when Block is performing strongly. The company reported robust financial results, including a 24% rise in gross profit and continued growth in its customer base. This highlights a growing trend in the tech sector where profitability no longer guarantees job security, especially as automation and AI reshape operational needs.

Dorsey opted for a single, large-scale layoff rather than multiple smaller rounds over time. He argued that repeated layoffs can harm employee morale, reduce focus, and erode trust among stakeholders. By taking decisive action now, the company aims to stabilize its structure and position itself for long-term growth in an AI-centric future.

To support affected employees, Block is offering comprehensive severance packages, including around 20 weeks of pay, additional compensation based on tenure, healthcare benefits, and transition assistance.

The announcement has also sparked broader discussions about the future of work. Dorsey warned that many companies may soon follow a similar path, suggesting that AI-driven restructuring could become widespread across industries. Analysts and tech leaders view this move as a signal of a larger shift, where businesses prioritize leaner teams powered by advanced technology.

As artificial intelligence continues to evolve, Block’s decision may mark a turning point—indicating that the global workforce is entering a new era where efficiency, automation, and adaptability will define success.