Block Cuts Nearly Half of Staff; CEO Jack Dorsey Says Others Will Follow as Shares Jump
Block has cut nearly half of its workforce in a reduction the company tied directly to developments in artificial intelligence, and the move has already driven a dramatic market response. The CEO, Jack Dorsey, said most companies will do the same, suggesting comparable reductions could occur within the next year.
Block workforce reduction
The company announced a workforce slashing that executives characterized as cutting nearly half of employees. That broadly quantified reduction was also reported as affecting roughly 4, 000 roles, placing the staff impact in both percentage and headcount terms.
Shares jump 24%
Share trading reacted swiftly: Block’s stock climbed about 24% following the disclosure of the cuts. The market move followed the company’s disclosure of the narrowed headcount, linking the cost reduction to an immediate investor reassessment.
Jack Dorsey and the 4, 000 layoffs
Jack Dorsey, identified as the chief executive, confirmed the personnel shift and framed it as part of a wider technological transition. He stated that others in the industry are likely to enact similar reductions, predicting that such moves would occur "within the next year. "
AI cited as cause
Executives attributed the decision to advances in artificial intelligence. That causal claim — AI enabling or necessitating staffing changes — was presented as the primary reason for the restructuring, leading directly to the nearly half reduction and the specific figure of about 4, 000 positions affected.
Timeline and public reaction
Coverage of the developments spread rapidly, with initial accounts emerging 9 hours ago and follow-up notices appearing 7 hours ago. What makes this notable is how quickly the market and leadership commentary aligned: the announcement of the cuts, the explicit AI rationale, and the CEO’s projection about peers all coincided with the 24% stock surge.
The decision combines concrete measures and forward-looking claims. On the measures side, the company both framed the move as nearly halving its payroll and cited a specific headcount toll of about 4, 000. On the forward-looking side, the CEO’s assertion that most companies will replicate the course within the next year introduces a timeline for broader industry change.
For investors and workers alike, the immediate effect was clear: the market rewarded the cost-cutting announcement with a substantial share-price rise, while the company signaled expectations of continued disruption from AI. The timing matters because the CEO’s public projection accompanied the disclosure of the cuts, linking leadership strategy and market reaction in real time.
