Jack Dorsey’s Block cuts nearly half its workforce and leans into AI transformation
Jack Dorsey announced that Block will lay off almost half its workforce as the company embraces artificial intelligence, a move the executive framed as a fundamental change to how companies are built and run. The decision reduces headcount from 10, 000 to less than 6, 000 and signals a strategic pivot with material financial and market consequences.
Jack Dorsey frames the layoffs as an AI-driven shift
In a letter to shareholders, external, Jack Dorsey said AI "fundamentally changes what it means to build and run a company. " He added that he believes the majority of companies will reach similar conclusions and make comparable structural changes within the next year. He also said, "I don't think we're early to this realisation. I think most companies are late. "
What the cuts mean for Block’s operations
Block, which owns Square, CashApp and Tidal, will see its workforce drop to under 6, 000 from 10, 000. Leadership described the move as a pivot toward AI tools and workflows, and the company disclosed it will incur up to $500 million (£370 million) in restructuring costs as part of this new strategy. The firm’s financial report also showed strong demand for its products and services, which pushed up profits at the end of last year.
Layoff context: the broader tech industry trend
This round of cuts follows several rounds of layoffs at Block since 2024, but it is the first time the company has explicitly cited AI as the reason for redundancies. The move is described as the latest in a series of major job cuts across the tech sector. 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.
Industry reactions and the AI automation debate
Other large tech firms have also trimmed staff as their focus shifts toward heavy investment in AI. Meta, Microsoft and Google have all laid off workers while redirecting resources to AI programs. Mark Zuckerberg said he is expecting 2026 to be the year that AI dramatically changes the way people work and noted that projects that once required large teams can increasingly be completed by much smaller groups. Most tech companies today are using AI tools that automatically write the computer code required to operate software or websites, like Claude Code from Anthropic or Codex from OpenAI.
Automation of work that was previously performed by highly trained people has stoked fears about the future of jobs. 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. The tension between rapid AI adoption and workforce stability is central to interpretations of Block's decision.
Market and corporate fallout
Following the announcement, Block's shares rose by more than 20% in extended trading. the restructuring costs of up to $500 million (£370 million) will be incurred as it shifts toward the new strategy. Block's recent profit uptick at the close of last year was cited alongside the staffing reductions as part of the company’s recalibration.
Background on leadership and platform history
Jack 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 moves at Block are presented by leadership as a direct response to rapidly advancing AI capabilities and as part of a broader industry-wide realignment.
Details may continue to evolve as Block implements the restructuring and other companies announce further shifts tied to AI strategy. Recent updates indicate this is a developing, industry-wide moment rather than an isolated corporate decision.
