Block, the fintech company behind Square, Cash App and Afterpay, is cutting more than 4,000 positions — roughly 40% of its workforce — as it restructures around artificial intelligence. The reductions will reduce headcount to just under 6,000 employees.
CEO and co-founder Jack Dorsey said the decision reflects AI’s rapidly expanding capabilities rather than financial distress. In a shareholder letter he argued that a much smaller team, equipped with the company’s new tools, can accomplish more and do it better as intelligence tools improve week by week. CFO Amrita Ahuja said Block sees an opportunity to move faster by automating more work and relying on smaller, highly skilled teams.
Dorsey also posted on X that Block’s business remains strong and gross profit continues to grow. Company leadership chose to make an immediate, large reduction rather than stretch cuts over time.
Affected employees will receive at least 20 weeks of severance depending on tenure, equity that vests through the end of May, six months of health coverage, an additional $5,000 in support, and the option to keep company devices.
Investors responded positively to the news, sending Block’s shares up as much as 24%.
The layoffs reflect a broader technology-industry shift: many firms that expanded during the pandemic are now trimming staff and adopting AI to streamline operations. Block grew from under 4,000 employees at the end of 2019 to over 10,000, then reduced headcount as demand normalized. Other major tech companies, including Amazon, Meta, Microsoft and Verizon, have also announced substantial cuts and cited AI’s transformative effects.
Dorsey suggested more companies may reach similar conclusions soon, saying many organizations are late to recognize the structural changes AI brings and that similar moves could follow within a year.
