Jack Dorsey cuts Block workforce from 10,000 staff to just under 6,000 in AI-driven restructure

Jack Dorsey has announced that Block, Inc. will reduce its workforce by nearly half, marking one of the most dramatic restructurings in the company’s history.

In a note to employees on Tuesday, Dorsey said the organisation would shrink from more than 10,000 staff to just under 6,000. Over 4,000 employees will either leave the company or enter consultation processes, depending on their location and local labour laws.

The chief executive framed the move not as a response to financial distress but as a strategic shift driven by advances in artificial intelligence and changing models of work. He said Block’s gross profit continues to grow, its customer base is expanding and profitability is improving. However, he argued that “intelligence tools” developed and deployed internally are enabling smaller, flatter teams to operate more effectively, fundamentally altering how companies are built and run.

Block, formerly known as Square, operates a portfolio of financial technology products, including Cash App, Square and Afterpay. The company also has a growing focus on Bitcoin infrastructure through its Spiral and mining initiatives. It rebranded from Square to Block in 2021 to signal a broader ambition beyond point-of-sale payments and towards decentralised technologies.

In his message, Dorsey said affected employees would receive 20 weeks of salary plus one additional week per year of tenure. Equity will vest through the end of May, alongside six months of healthcare coverage. Departing staff will also keep their corporate devices and receive 5,000 US dollars to support their transition. International employees will receive comparable packages in line with local regulations.

“All employees will be notified today,” Dorsey wrote, adding that internal communication channels would remain open until Thursday evening Pacific Time to allow colleagues to say their farewells. He is also scheduled to host a live video session to address staff directly.

Block: AI has finally come for our jobs

The announcement comes amid a broader wave of restructuring across the global technology sector. Since 2022, major firms, including Meta Platforms, Google, and Amazon, have collectively cut tens of thousands of jobs as they recalibrated following pandemic-era expansion. Many have cited efficiency, automation and AI integration as central to their long-term strategy.

Also read: Global tech industry has recorded 181,457 layoffs in 2025, to reach 235,000 by year end

What sets Block’s move apart is its scale relative to headcount and the explicit framing around AI-enabled productivity. Rather than gradual reductions, Dorsey said he chose to act decisively to avoid repeated rounds of layoffs, which he described as damaging to morale and trust. “A smaller company gives us the space to grow our business the right way, on our own terms,” he noted.

Industry analysts say the decision reflects a structural shift within fintech and software more broadly. AI-powered coding assistants, automated customer support systems and data-driven risk models are already reducing the need for large operational and engineering teams. For digital payments companies, where margins are sensitive to transaction costs and compliance overhead, automation offers a clear route to improved profitability.

However, the human cost remains significant. Block has been regarded as one of the more mission-driven firms in Silicon Valley, with Dorsey often advocating for decentralisation and economic empowerment. The reduction raises questions about how corporate culture and product velocity will evolve under a leaner structure.

Dorsey acknowledged the risks involved, stating that some decisions may prove imperfect but that flexibility has been built into the plan. He also emphasised that the move is not a reflection of employee performance.

For Africa’s fast-growing fintech ecosystem, where Block and Cash App are closely watched as bellwethers of global payments trends, the development underscores a new reality. The race towards AI-centred operations is accelerating, and even profitable technology firms are rethinking scale.

Block is expected to provide further strategic details in the coming days as it outlines how intelligence tools will sit at the core of its next phase of growth.

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