Block, Inc. will reduce its workforce by nearly half, cutting more than 4,000 jobs as CEO Jack Dorsey said the fintech firm restructures around artificial intelligence and leaner teams.
Summary
- Block, Inc. will cut over 4,000 jobs, reducing headcount from 10,000+ to under 6,000 in one of its largest corporate overhauls.
- CEO Jack Dorsey says the move reflects a strategic pivot toward intelligence tools and flatter, more efficient teams — not financial distress.
- Investors responded enthusiastically, sending Block shares up more than 23% in after-hours trading.
Wall Street cheers Jack Dorsey’s AI restructure
In a note shared publicly, Jack Dorsey said the company will shrink from over 10,000 employees to just under 6,000. He described the move as “one of the hardest decisions in the history of our company,” adding that affected employees would be notified the same day.
Despite the scale of the layoffs, Dorsey emphasized that Block is not facing financial distress. He said gross profit continues to grow, customer numbers are rising, and profitability is improving.
Instead, he framed the cuts as a proactive shift driven by the rapid advancement of intelligence tools that are reshaping how companies are built and operated.
“We’re already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working,” Dorsey wrote, arguing that acting decisively now would avoid repeated rounds of layoffs that could damage morale and trust.
Employees leaving the company will receive 20 weeks of salary plus an additional week per year of tenure, equity vesting through the end of May, six months of healthcare coverage, their corporate devices, and $5,000 in transition support. Terms will vary internationally depending on local regulations.
Dorsey said internal communication channels would remain open through Thursday evening to allow departing staff to say goodbye, and he plans to host a live video session to address employees directly.
The market’s reaction to Jack Dorsey’s “leaner, meaner” pivot was nothing short of explosive. As news broke regarding the reduction of 4,000 roles, Block Inc. shares ignited in after-hours trading, surging by more than 23%.
Block stock price performance | Source: Google FinanceThe chart reflects a dramatic vertical shift as investors pivoted from uncertainty to overwhelming optimism, interpreting the layoffs not as a sign of corporate distress, but as a commitment to long-term profitability and AI-driven efficiency.
Source: https://crypto.news/jack-dorsey-cuts-half-of-block-workforce-shares-surge/
