Block, the fintech company behind Square, Cash App and Afterpay, is cutting more than 4,000 roles—about 40% of its workforce—as it reorganizes around artificial intelligence. The reductions will bring headcount to just under 6,000 employees.
Co-founder and CEO Jack Dorsey said the move is driven by AI’s growing capabilities rather than financial distress. In a letter to shareholders, he wrote that “a significantly smaller team, using the tools we’re building, can do more and do it better,” noting that advances in intelligence tools are accelerating weekly. Chief financial officer Amrita Ahuja said the company sees an opportunity to move faster with smaller, highly skilled teams by automating more work with AI.
Dorsey posted on X that Block’s business remains strong and gross profit continues to grow. He said leadership chose to act decisively rather than taper reductions over time. Affected employees will receive at least 20 weeks’ severance depending on tenure, equity vesting through the end of May, six months of health coverage, an additional $5,000 in support, and the option to keep company devices.
Investors reacted positively, sending Block’s shares up as much as 24%.
The layoffs mirror a broader tech-industry trend as companies adjust after pandemic-era expansions and adopt AI to streamline operations. Many firms scaled up during the pandemic—Block grew from under 4,000 employees at the end of 2019 to over 10,000—then reduced staff as demand normalized. Other major tech companies, including Amazon, Meta, Microsoft and Verizon, have also announced large cuts, often citing AI’s transformative impact.
Dorsey suggested more companies may follow, predicting many firms are late to recognize the structural changes AI requires and that most will reach similar conclusions within a year.
