Block Cuts Nearly Half of Workforce in Major AI Overhaul as Dorsey Opts for One Big Reset
Block on Thursday announced sweeping layoffs that will reduce the company’s headcount by nearly half as it accelerates efforts to embed artificial intelligence across its operations. The move by block affects over 4, 000 jobs and represents a radical workplace reset intended to reposition the company for AI-driven growth.
Block cuts and headcount math
the reduction will bring total staff from over 10, 000 to just under 6, 000, meaning more than 4, 000 employees will be asked to leave or enter consultations. Executives framed the reduction as a single, decisive round of cuts rather than a sequence of smaller reductions.
Why Dorsey chose a single round
CEO Jack Dorsey explained the decision in a string of posts on X, the platform he previously led when it was known as Twitter. He said the move is not a signal that the company is in distress but is meant to give Block more room to grow “the right way” and avoid constantly reacting to market pressures. The posture favors a leaner organization that can pursue AI integration without incremental headcount churn.
Severance, benefits and transition support for affected workers
Block outlined a package of transition support for those impacted: 20 weeks of salary, an additional one week of pay per year of tenure, equity that will vest through the end of May, six months of healthcare, corporate devices, and a $5, 000 payment to assist with whatever employees need during the transition.
AI at the core: new ways of working
Dorsey said the intelligence tools the company is building, combined with smaller, flatter teams, are enabling a different way of working that changes how a company is built and run and is accelerating rapidly. He added that Block will be reoriented with intelligence at the core of how the company works, creates and serves customers.
Organizational hindsight: Square, Cash App and added complexity
In a follow-up post, Dorsey said the company over-hired during the COVID period because he had created two separate company structures — Square and Cash App — instead of a single structure. That duplication was corrected in mid 2024, he said, but the company also took on complexity through lending, banking and buy now, pay later (BNPL) products that contributed to the broader staffing picture.
Market reaction and stock moves
Shares of the company surged after the announcement, rising 17% during Friday morning trading. The stock was up 22% over the prior week but remained down just over 2% year to date.
Wider market and AI context
News coverage around the announcement ran alongside broader market and AI commentary. A market-panel segment discussed a market selloff, rotation among tech stocks and a recent post-earnings pullback at Nvidia. The CEO of Nvidia characterized the AI boom as only beginning and said AI will be everywhere. Separately, one industry leader called another’s ambitious space-data-center plans inappropriate for current AI computing needs, using strong language to describe that mismatch. Policymakers are also debating a bipartisan bill intended to help prepare the workforce for an AI future, with advocates stressing that workers can’t be left behind.
Editorial notes and distribution limitations
The coverage noted that public market quotes can appear in real time or with a delay of at least 15 minutes and that market data were provided by a third-party market data vendor. The material carried a legal notice restricting redistribution and a 2026 copyright declaration. Photo credits and other editorial attributions appeared alongside the original coverage.
Recent updates indicate this is an evolving story and details may continue to develop.
