Update (Feb. 27, 1:25 AM UTC): This article was updated with additional details on Block’s job cuts and earnings.
Jack Dorsey’s payments company Block announced a major restructuring that will eliminate roughly 40% of its workforce, a change Dorsey attributed to the rapid adoption of AI at the company. In a letter shared on X, Dorsey said intelligence tools together with smaller, flatter teams are “enabling a new way of working” and that he opted to make a swift, decisive cut rather than reduce headcount gradually.
Block currently employs just over 10,000 people; Dorsey said just under 6,000 employees will remain, meaning about 4,000 roles will be eliminated. Affected staff will receive 20 weeks of salary plus one additional week for each year of tenure, six months of health care coverage, their corporate devices and an extra $5,000 for personal needs. Employees were to be notified the day of the announcement whether they were being let go or entering consultation.
Bloomberg had earlier reported that up to 10% of the workforce could be cut during annual performance reviews as part of a wider reorganization. Dorsey said the current round followed a “full review” and pressure test, and he predicted other companies will make similar structural changes as intelligence tools change how businesses are built and run.
Block’s headcount grew rapidly in recent years: Macrotrends data estimates about 3,835 employees in 2019, peaking at roughly 12,985 in 2023 — a roughly 237% increase over four years.
Looking ahead, Dorsey said Block will prioritize streamlined operations powered by AI automation to speed product output and emphasize enabling users to build their own features on the platform.
The announcement accompanied Block’s Q4 2025 earnings: gross profit was $2.87 billion, up 24% year-over-year, and Cash App revenue rose 33% year-over-year to $1.83 billion. Block’s stock jumped more than 31% at market open to $96.58 from a prior close of $73.65.