Jack Dorsey Cuts 4,000 Jobs as Block Bets on Artificial Intelligence
Block Inc. is slashing more than 4,000 jobs - roughly 40% of its workforce - in one of the most aggressive AI-driven restructurings in the tech sector this year.
- Block is cutting over 4,000 jobs – about 40% of staff – to focus on AI efficiency.
- Jack Dorsey says the move is strategic, not due to weak financial results.
- The stock jumped 20% after the announcement.
The decision will shrink the company’s headcount from over 10,000 employees to just under 6,000.
The move was announced by CEO Jack Dorsey, who framed the cuts not as a response to financial weakness, but as a strategic reset built around artificial intelligence and internal “intelligence tools.”
Efficiency Over Headcount
Dorsey argued that advances in AI have fundamentally changed how companies operate. According to him, smaller teams equipped with powerful automation tools can outperform larger organizations burdened by complexity.
Rather than gradually reducing staff over time, Dorsey opted for a single sweeping round of layoffs. He said the goal was to proactively create a “flatter” organization now, instead of being forced into reactive cuts later.
The timing is notable. Block is not under visible financial pressure. In the fourth quarter of 2025, the company reported a 24% year-over-year jump in gross profit to $2.87 billion. For the full year, gross profit reached $10.36 billion.
Internal Pushback
The announcement sparked visible tension internally. During an all-hands videoconference following the news, employees reportedly filled the screen with dozens of thumbs-down emoji reactions.
Dorsey also faced criticism for wearing a black cap emblazoned with the word “LOVE” while delivering the message that nearly half the company would be let go. For many staff members, the optics intensified frustration over the abrupt scale of the decision.
Severance Package Details
Block is offering a relatively robust exit package to affected employees.
Those impacted will receive 20 weeks of base salary, plus an additional week for every year of tenure. Equity will vest through the end of May 2026. The company is also providing six months of healthcare coverage, $5,000 in transition support, and allowing departing employees to keep their corporate devices.
Market Applauds the Move
Investors responded swiftly and positively. Block’s stock surged between 20% and 25% in after-hours trading immediately following the announcement, signaling Wall Street’s approval of the leaner cost structure.
This latest cut follows a broader multi-year restructuring effort. The company previously reduced staff by roughly 8% in late 2023, eliminated around 1,000 roles in January 2024, and cut 931 positions in March 2025.
Betting on Internal AI Tools
Central to the new strategy is an internal AI system known as “Goose,” which is designed to automate workflows across engineering and operations. The company is increasingly leaning on such proprietary tools to reduce manual processes and accelerate development cycles.
Dorsey believes many companies are behind the curve and predicts similar structural overhauls across corporate America within the next year as AI adoption accelerates.
The message is clear: for Block, the future is not about scaling teams – it is about scaling intelligence.
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Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
