Block Slashes 40% of Staff, Cites AI
SF-based fintech giant Block is laying off 4,000 employees, nearly 40% of its workforce. CEO Jack Dorsey explicitly cited efficiency gains from AI, stating that "intelligence tool capabilities have changed what it means to run a company." Investors cheered the move, sending the stock up over 20%, while commentators warned this could be a "canary in the coal mine" for AI-driven job cuts.
The massive job cuts came alongside a strong fourth-quarter 2025 earnings report, where Block announced a 24% year-over-year increase in gross profit. CEO Jack Dorsey was explicit that the layoffs were not a sign of a struggling business, but a strategic shift to a new operational model. The company projects $12.2 billion in gross profit for 2026. This workforce reduction is a sharp reversal of Block's pandemic-era expansion, which saw headcount balloon from 3,835 in 2019 to over 10,000. Dorsey admitted the company "over-hired" and created inefficient, separate structures for its Square and Cash App divisions. The new layoffs will bring the total number of employees to just under 6,000. While this is Block's largest-ever layoff, it follows earlier workforce reductions. The company cut 931 jobs, or 8% of its staff, in 2025, citing performance issues at the time. Another round of nearly 1,000 layoffs occurred in early 2024, targeting the Cash App and Square units. Dorsey opted for a single, deep cut rather than gradual layoffs, stating that repeated rounds are "destructive to morale, focus, and to the trust of customers and shareholders." Affected employees will receive a minimum of 20 weeks' severance pay, six months of healthcare, and an additional $5,000. The company's AI push centers on internal tools, including an AI coding assistant named "Goose," which Dorsey has promoted as a key to future productivity. The stated goal is to create a "smaller,
