Bay Area Tech Layoffs Continue at Block, EBay
The wave of tech layoffs in the Bay Area is ongoing, with Jack Dorsey's Block cutting nearly half its staff, or 4,000 employees. Dorsey warned that other tech firms will follow suit within the year. EBay also announced it is cutting 800 roles, or 6% of its workforce, as it pivots toward AI and automation.
Jack Dorsey stated Block's decision was not due to financial weakness, citing growing gross profit and improving profitability. He attributed the deep cuts to a structural shift, where smaller, flatter teams using new AI tools fundamentally change how the company operates. Following the announcement, Block's stock surged over 20%. This was Block's fourth round of layoffs since late 2023. Affected employees will receive 20 weeks of salary plus an additional week per year of tenure, equity vested through the end of May, and six months of health coverage. They will also keep their corporate devices and receive $5,000 to aid in their transition. At eBay, California public records show the 800-person layoff heavily impacted software engineers, developers, and payments/finance roles in its San Jose and San Francisco offices. Some laid-off employees have reported that their US-based roles are being moved to international locations like India and Ireland. EBay's restructuring aligns with its deeper integration of artificial intelligence. The company launched AI systems for sellers called 'Listing Assistant' and an 'Employee Copilot', which have already reduced product listing times by 40% and cut customer service ticket volumes by 30%. These layoffs are part of a larger Bay Area trend that saw 137,200 tech jobs lost between 2023 and 2025. While initially a correction for overhiring during the pandemic, the recent wave of cuts is increasingly being driven by a strategic shift toward AI investment and automation.
