Jack Dorsey’s Block to cut workforce by nearly half as it embraces AI
jack dorsey says Block will lay off almost half its workforce, a move he framed as a response to artificial intelligence changing how companies are built and run. The announcement — and the company’s plan to take substantial restructuring charges — reverberates across a tech sector already reshaping headcount around AI investments.
Jack Dorsey frames the cuts as an AI-driven structural change
In a letter to shareholders, jack dorsey wrote that AI "fundamentally changes what it means to build and run a company. " He added, "Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes. " He also said, "I don't think we're early to this realisation, " he said Thursday.
The company will reduce headcount from 10, 000 to less than 6, 000, a reduction described as almost half the workforce. Block has carried out several rounds of layoffs since 2024, but this is the first time the company has pointed to AI capabilities as the reason for redundancies.
Financial impact: profits, restructuring charges and a market reaction
Block's financial report showed strong demand for its products and services, which pushed up profits at the end of last year. The firm said it will incur up to $500m (£370m) in restructuring costs as it pivots to a new strategy tied to AI.
After the announcement, the company's shares rose by more than 20% in extended trading.
Products and brands tied to the company’s decision
Block is the parent company of Square, CashApp and Tidal, the businesses that will be affected as the firm reshapes its workforce. The restructuring is being presented within the company as a strategic pivot toward tools and processes driven by artificial intelligence.
Layoff wave: Amazon, Meta, Microsoft and Google have also trimmed staff
The Block cuts come amid a wider wave of job reductions tied to AI spending. At the end of January, Amazon laid off 16, 000 employees, having already cut 14, 000 roles a few months earlier. Brian Olsavsky, Amazon's chief financial officer, said the company was looking at cost reductions elsewhere as it ramps up AI spending.
Meta, Microsoft and Google have also laid off workers as their focus shifted to huge investments in AI. Mark Zuckerberg, Meta's co-founder and chief executive, said he is expecting "2026 to be the year that AI dramatically changes the way we work. " He added, "We're starting to see projects that used to take big teams now be accomplished by a single, very talented person. "
Tools, fears and debate over the immediacy of the threat
Most tech companies today are using AI tools that automatically write the computer code required to operate software or websites, including Claude Code from Anthropic and Codex from OpenAI. That automation has prompted fears that AI will overturn the job market.
At the same time, some analysts have suggested the immediate threat to jobs has been exaggerated by executives who want to appear ahead of the curve.
Background: Dorsey’s past and the wider corporate history noted in the announcement
Dorsey is a co-founder and former chief executive of Twitter, the online micro-messaging platform that was later bought by Elon Musk and renamed X. The current announcement positions Block’s workforce reduction as part of a broad industry shift driven by AI capabilities.
