Block Lays Off 4,000 Employees Citing AI-Driven Efficiency

• Block Inc. will cut over 4,000 jobs, about 40% of its workforce, as it restructures around AI tools.
• Jack Dorsey has cited that AI tools are enabling a new way of working with smaller, flatter teams.
• Block stock surges 20%, climbing from $55 to $65 after layoff announcement. 

Jack Dorsey has announced that Block Inc. will reduce its workforce. According to the announcement, Block will cut its staff from over 10,000 to under 6,000 employees. 

As such, Block will eliminate more than 4,000 jobs globally, catalyzed by mainstream adoption of artificial intelligence (AI). As AI tools replace roles, boost efficiency, and enable smaller teams to handle larger workloads, Block expects to improve financial performance and expand profit margins.

Jack Dorsey’s Block Cuts 4,000 Jobs

According to Dorsey, Block took the bold decision after months of deliberations. He stated that the company had two options: either gradually reducing employees over months or taking drastic cuts.

“I chose the latter. Repeated rounds of cuts are destructive to morale, to focus, and to the trust that customers and shareholders place in our ability to lead,” Dorsey stated.

The company stated that AI tools paired with smaller teams are fundamentally more efficient. Dorsey argued that the company could not afford not to act fast, as Block’s growth required his flexibility.

“To those staying…I made this decision, and I’ll own it. What I’m asking of you is to build with me. We’re going to build this company with intelligence at the core of everything we do,” he added.

The Block’s decision to send home 40% of its workforce has sent shockwaves through the wider crypto community and global workforce. According to Changpeng Zhao, cofounder of Binance, the Block’s event is a stern reminder that people must learn to optimize AI to remain effective.

James Seyffart, a Bloomberg reporter, stated that the decision by Block is somewhat terrifying to read. Moreover, Seyffart expects more similar cuts in the near future, amid low employment rates in the United States.

According to Mike Alfred, a popular investor, more companies will be adopting AI technology and end up following Block in laying off more workers.

Market Impact

Following the drastic decision to cut its employees by 40%, Block’s stock surged over 20% on the day. The company’s stock jumped from trading below $55 to hovering above $65 at press time. 

As such, it is clear that Block’s investors are optimistic about better revenue in the coming quarters due to AI-induced influence. Furthermore, Block’s decision to cut jobs coincided with its strong Q4 2025 earnings results. 

Notably, the company’s gross profit surged 24% year-over-year to $2.87 billion for the fourth quarter. The Cash App and Square segments performed solidly, and overall profitability improved.

Related: Why Bitcoin Stays Volatile After the Latest US Jobs Report