Jack Dorsey's Block Cuts Nearly Half Its Staff for AI-First Future

Block announced on Thursday that it will cut over 4,000 jobs, nearly half its workforce, as part of an overhaul to embed artificial intelligence across its operations.

CEO Jack Dorsey framed the cuts as a proactive response to AI's transformative impact rather than a financial emergency. "Intelligence tools have changed what it means to build and run a company," he said. "We're already seeing it internally. A significantly smaller team using the tools can do more and do it better."

Dorsey said Block opted for a single deep round of cuts instead of multiple smaller layoffs over time. "Repeated rounds of cuts are destructive to morale, to focus, and to the trust that customers and shareholders place in our ability to lead," he wrote in a post on X.

He predicted that within a year, most companies will arrive at the same conclusion. "I don't think we're early to this realization. I think most companies are late," he added. "I'd rather get there honestly and on our own terms than be forced into it reactively." Investors responded enthusiastically, sending Block's stock up more than 25% in after-hours trading.