Last updated on March 10th, 2026 at 11:54 am
Block Inc. is cutting roughly 40% of its workforce in a sweeping restructuring that underscores how artificial intelligence is rapidly redefining corporate operations.
Chief executive Jack Dorsey said the decision was driven by the company’s accelerating adoption of internal “intelligence tools,” which he believes fundamentally change how companies are built and managed.
we’re making @blocks smaller today. here’s my note to the company.
####
today we’re making one of the hardest decisions in the history of our company: we’re reducing our organization by nearly half, from over 10,000 people to just under 6,000. that means over 4,000 of you are…
— jack (@jack) February 26, 2026
CEO says smaller, AI-Driven teams are the future
In a letter shared publicly, Dorsey argued that smaller, flatter teams empowered by AI can move faster and operate more efficiently than traditional structures. He framed the move as a decisive choice: act now or risk prolonged uncertainty. Gradual layoffs, he said, would erode morale and weaken trust among customers and shareholders.
“I chose to be honest about where we are and act on it now,”
Dorsey noted.
More than 10,000 employees currently work at Block. After the cuts, just under 6,000 will remain. Affected staff will receive 20 weeks’ pay, an additional week per year of service, six months of healthcare coverage, their work devices and a $5,000 stipend for personal needs.
Block’s headcount had surged in recent years, climbing from about 3,800 employees in 2019 to nearly 13,000 in 2023, a 237% jump before this reversal.
Stock surges as earnings beat expectations
Investors responded positively. Shares of Block (NYSE: XYZ) soared more than 31% at market open, rising to $96.58 from a previous close of $73.65.
The rally came alongside strong fourth-quarter results. Block posted gross profit of $2.87 billion, up 24% year-over-year. Its popular peer-to-peer platform, Cash App, recorded revenue growth of 33% to $1.83 billion.
Dorsey predicted that many companies will soon follow suit, arguing that AI-driven restructuring is no longer optional but inevitable. This marks Block’s third round of significant layoffs in the past year. In March 2025, Block laid off 931 employees, approximately 8% of its workforce, in a company-wide restructuring move. Earlier in 2024, the company let go of around 1,000 employees.
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