# Dorsey Slashes Block's Workforce in Half, Warns Yours is Next
In a bold move shaking the tech world, Block Inc. CEO Jack Dorsey announced the layoff of over 4,000 employees—nearly half the company's workforce—citing the rapid rise of AI tools that enable leaner, more efficient teams. Despite strong financials, Dorsey's decision signals a seismic shift in how companies operate, with his stark warning that this "new way of working" could soon transform industries everywhere.[2][4]
Block's Massive Layoffs: From 10,000 to Under 6,000 Employees
Block, the fintech giant behind Square, Cash App, Afterpay, and TIDAL, revealed plans to slash its global headcount from over 10,000 full-time employees to just under 6,000 by the end of Q2 2026. This represents a more than 40% workforce reduction, with restructuring charges estimated at $450 million to $500 million, primarily in Q1 2026.[1][3][5]
Dorsey addressed the cuts in a candid X post and internal memo, emphasizing that the decision stems not from financial distress but from AI's transformative power. "We're already seeing that the intelligence tools we're creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company," he wrote. The layoffs follow previous rounds, including 931 jobs cut in 2025 for performance reasons, but this time AI is explicitly the driver.[2][4]
To soften the blow, Dorsey kept employee emails and Slack channels open until Thursday evening, allowing farewells. "I know doing it this way might feel awkward... I'd rather it feel awkward and human than efficient and cold," he noted.[2]
AI Disruption Fuels the Overhaul Amid Record Profits
Block's Q4 2025 results underscore the irony: adjusted EPS of $0.65 on $6.25 billion revenue beat expectations, with gross profit soaring 24% year-over-year to $2.87 billion, driven by Cash App's 33% jump to $1.83 billion. Full-year 2025 gross profit hit over $10 billion, up 17%.[3][5][7]
Yet Dorsey opted for aggressive restructuring, boosting 2026 guidance to $12.2 billion gross profit (18% growth), $3.2 billion adjusted operating income, and $3.66 adjusted diluted EPS. He rejected gradual cuts, choosing immediate action: "I had two options: cut gradually over months or years... or be honest about where we are and act on it now."[3][4]
Challenges persist, including 108% higher credit losses from lending expansion like Cash App Borrow, but the pivot to "AI-native teams" aims to make Block "significantly more valuable as a smaller, faster" entity.[3][5]
Investor Cheers and Broader Tech Layoff Wave
Markets applauded the news, with Block's stock (NYSE: XYZ) surging over 23% in after-hours trading to around $66.62, reflecting optimism about efficiency gains.[2][5]
This joins a tech layoff spree, including Amazon's 16,000 cuts in January 2026 to streamline layers. Dorsey, also Twitter co-founder (now X under Elon Musk), positions Block as a Bitcoin-centric leader, with products like Bitkey integrating crypto amid S&P 500 status since 2025.[2][5]
Implications for Workers: Is Your Job Next in the AI Era?
Dorsey's memo warns of industry-wide change: AI paired with flatter teams "fundamentally changes what it means to build and run a company—and that's accelerating rapidly." While Block thrives financially, the cuts highlight AI's role in displacing jobs, urging workers and firms to adapt to intelligence-driven operations.[2][4][6]
Frequently Asked Questions
What prompted Block's 40% workforce reduction?
Block is cutting over 4,000 jobs to shift to smaller, AI-powered teams that enable more efficient operations, despite strong profits, as explained by CEO Jack Dorsey.[2][4]
How many employees is Block laying off?
The company is reducing from over 10,000 to under 6,000 full-time employees, affecting more than 4,000 workers by Q2 2026.[1][3][5]
Is Block in financial trouble after the layoffs?
No, Block reported record 2025 gross profits over $10 billion and raised 2026 guidance, with the cuts driven by AI efficiency, not distress.[3][5]
How did investors react to the Block layoffs?
Block's stock surged more than 23% in after-hours trading following the announcement, signaling market approval of the AI-focused restructuring.[2][5]
What are the expected costs of Block's restructuring?
Block anticipates $450–$500 million in charges, mainly severance, benefits, and share-based awards, mostly in Q1 2026.[3]
Is this part of a larger trend in tech layoffs?
Yes, Block follows Amazon's 16,000 cuts in 2026 and others, as companies leverage AI to do more with fewer people.[2]
🔄 Updated: 2/27/2026, 12:00:26 AM
**NEWS UPDATE: Consumer and Public Backlash Mounts Over Block's Mass Layoffs**
Consumers expressed alarm on X over potential disruptions to **Cash App** and **Square** services, with one user posting, "If AI is replacing 4,000 jobs at Block, will my payments glitch next?" amid reports of the fintech's workforce slashed from over 10,000 to under 6,000.[1][2][5] Public unease spiked as Dorsey warned "most companies will do the same," fueling debates on AI-driven job losses, especially after U.S. firms announced 108,435 cuts in January alone—highest since 2009—drawing comparisons to Amazon's 16,000 layoffs.[4]
🔄 Updated: 2/27/2026, 12:10:57 AM
**NEWS UPDATE: No Regulatory Response to Block's Mass Layoffs Yet**
As of February 27, 2026, U.S. regulatory bodies including the Department of Labor and Securities and Exchange Commission have issued no official statements or investigations in response to Block's announcement of cutting more than 4,000 jobs—nearly half its 10,205 full-time workforce—by Q2 2026.[2] Labor advocates have called for federal scrutiny over AI-driven displacement, but concrete actions remain absent, with sources noting the layoffs stem from efficiency gains via tools like Block's internal AI "Goose."[3] Dorsey emphasized the move signals strength, stating: "We're already seeing that the intelligence tools we're creating... are enabling
🔄 Updated: 2/27/2026, 12:20:57 AM
**Block's stock surged over 23% in after-hours trading** following CEO Jack Dorsey's announcement of cutting more than 4,000 jobs—nearly half its 10,000+ workforce—to pivot to AI-driven efficiency[1][2][3]. The fintech giant, parent of Square and Cash App, also boosted its 2026 outlook with targets of $12.20 billion in gross profit (up 18% YoY) and $3.20 billion in adjusted operating income, signaling investor optimism amid $450-500 million in restructuring charges[2]. Dorsey warned on the earnings call, "A significantly smaller team using the tools we're building can do more and do it better," predicting other firms will follo
🔄 Updated: 2/27/2026, 12:30:58 AM
**NEWS UPDATE: Consumer and Public Reaction to Block's Massive Layoffs**
Public reaction to Jack Dorsey's announcement of slashing Block's workforce from over 10,000 to under 6,000—cutting more than 4,000 jobs—has amplified fears of AI-driven job losses, with social media users on X decrying it as "the beginning of the end for white-collar work" amid a 118% surge in U.S. layoffs to 108,435 in January alone[4]. Consumers of Square and Cash App express unease over service disruptions, posting queries like "Will my payments still work with half the staff gone?" while broader sentiment echoes Challenger, Gray & Christmas reports of rising anxiety in a tough job market
🔄 Updated: 2/27/2026, 12:40:58 AM
**Block's stock surged 23% following CEO Jack Dorsey's announcement of cutting the workforce nearly in half—from over 10,000 to under 6,000 employees—citing AI tools that "can do more and do it better."[1][2]** Investors reacted positively to the bold restructuring, which includes $450-500 million in Q1 2026 charges and an upbeat 2026 outlook targeting $12.20 billion gross profit (up 18% YoY), signaling confidence in AI-driven efficiency.[1][2] Dorsey emphasized, “I’d rather take a hard, clear action now... than manage a slow reduction,” boosting market sentiment amid prior rolling layoffs.[1]
🔄 Updated: 2/27/2026, 12:50:58 AM
**NEWS UPDATE: No Regulatory Response to Block's Massive Layoffs**
As of February 27, 2026, no U.S. regulatory bodies, including the SEC or Department of Labor, have issued statements or launched probes into Block Inc.'s February 26 announcement of slashing its workforce by more than **40%**—from over **10,000** to under **6,000** employees—with expected restructuring charges of **$450-500 million**[1]. The company's 8-K SEC filing details the "Workforce Plan" under Item 2.05 for exit costs but reports no government inquiries or interventions[1]. CEO Jack Dorsey's shareholder letter framing the cuts as a shift to "leaner, AI-nativ
🔄 Updated: 2/27/2026, 1:00:57 AM
**Breaking News Update: Block's Massive Layoffs Spark AI-Driven Job Fears Across Tech**
Block CEO Jack Dorsey announced a workforce cut from over 10,000 to under 6,000 employees—slashing more than 40% or over 4,000 jobs—explicitly linking it to AI tools enabling "smaller and flatter teams" that "fundamentally change what it means to build and run a company."[1][2][3] Tech analyst Mary Meeker of Bond Capital warned in a recent note that "AI adoption will accelerate white-collar reductions by 30-50% industry-wide by 2028, with fintech leaders like Block signaling the tipping point."[1] Challenger, Gray & Christmas reporte
🔄 Updated: 2/27/2026, 1:10:57 AM
**LIVE NEWS UPDATE: Regulatory Response to Block Layoffs**
No official regulatory or government response has emerged to Block's announcement of cutting over 4,000 jobs—nearly halving its workforce from more than 10,000 to under 6,000—despite the move's ties to AI-driven workplace shifts cited by CEO Jack Dorsey[1][2]. Labor watchdogs and the Department of Labor have yet to comment publicly, even as the layoffs are set to conclude by the end of Q2 fiscal 2026, prompting calls from unions for scrutiny over severance and AI displacement impacts[2]. Dorsey's memo emphasized the cuts stem from "intelligence tools... enabling a new way of working," but federal agencies remain silen
🔄 Updated: 2/27/2026, 1:20:56 AM
**Breaking: Expert Analysis on Block's 40% Workforce Cut Sparks AI Job Loss Fears.** Tech analysts view Block CEO Jack Dorsey's slashing of over 4,000 jobs—from 10,205 to under 6,000 employees—as a bold pivot to "intelligence tools... paired with smaller and flatter teams," enabling a "new way of working," per Dorsey's X post, with the firm projecting $12.2B gross profit in 2026 despite $450-500M restructuring charges[1][2]. Industry observers, including Axios reports, warn this fuels a tech layoff surge—108,435 U.S. jobs cut in January alone—signaling AI's acceleration of "leaner teams
🔄 Updated: 2/27/2026, 1:30:57 AM
**Consumer outrage erupts online after Block's announcement of slashing its workforce from over 10,000 to under 6,000 employees—nearly half—via AI-driven changes, with many Cash App users threatening to delete the app.** On X, one viral post read, "Jack Dorsey just admitted AI will replace us all—boycotting Square and Cash App effective immediately," garnering over 50,000 likes and sparking #DeleteCashApp trends[1][2][3]. Public reaction splits, as Block's stock jumped 23% in after-hours trading, signaling investor approval amid widespread worker anxiety[2].
🔄 Updated: 2/27/2026, 1:40:57 AM
**LIVE NEWS UPDATE: Block's Massive Layoffs Spark Global AI Job Fears**
Block's announcement of slashing its global workforce from over 10,000 to under 6,000 employees—over 4,000 jobs cut across its international operations including Square, Cash App, Afterpay, and TIDAL—has ignited worldwide concerns over AI-driven displacement, with CEO Jack Dorsey warning that "intelligence tools... paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company."[1][2][3] European regulators in Ireland and the UK, where Block holds significant Afterpay staff, launched urgent consultations Friday on AI workforce impacts, demanding transparency on the 4
🔄 Updated: 2/27/2026, 1:50:58 AM
**Block cuts workforce by more than 40%** to roughly 6,000 employees from over 10,000, with CEO Jack Dorsey stating the company is shifting to "AI-native teams" despite strong 2025 financials—gross profit reached over $10 billion, up 17% year-over-year.[1][3] The restructuring will incur $450–$500 million in charges primarily in Q1 2026, yet Block raised its 2026 outlook to $12.20 billion in gross profit (18% growth) and $3.20 billion in adjusted operating income with a 26% margin, signaling the company expects efficiency gains from le
🔄 Updated: 2/27/2026, 2:00:58 AM
**LIVE UPDATE: Global Tech Layoff Wave Intensifies as Block Cuts 4,000 Jobs Amid AI Shift**
Block's announcement of slashing its global workforce from over 10,000 to under 6,000 employees—nearly 50%—has sparked international alarm over AI-driven job losses, with CEO Jack Dorsey warning, "We're already seeing that the intelligence tools we're creating and using, paired with smaller and flatter teams, are enabling a new way of working."[1][2] European tech leaders, including eBay's concurrent cut of 800 roles (6% of staff), voiced concerns via industry forums about a "contagion effect" on cross-border hiring, while Asian markets saw Block's
🔄 Updated: 2/27/2026, 2:10:58 AM
**Block cuts over 4,000 employees—nearly half its workforce—as CEO Jack Dorsey explicitly links the decision to AI integration, stating that "intelligence tools we're creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company."[1][3] The announcement represents a watershed moment in the AI-driven workforce transformation, as Block becomes one of the most prominent companies to directly attribute mass layoffs to artificial intelligence adoption, joining Amazon's 16,000-person cut announced in January.[1][2] Industry observers note this signals broader concerns: U.S. companies reported 108,435 layoffs in January
🔄 Updated: 2/27/2026, 2:20:56 AM
**Breaking: Block Slashes Workforce by 4,000 Amid AI Push.** CEO Jack Dorsey announced Thursday on X that Block is cutting nearly half its over 10,000 employees down to under 6,000, framing it as a proactive move despite strong profits to avoid "destructive" repeated layoffs that erode morale and trust.[1][2] CFO Amrita Ahuja cited AI automation for enabling "smaller, highly talented teams," with shares surging 24% in after-hours trading; Dorsey warned, "I’d rather get there honestly... than be forced into it reactively," predicting most firms will follow within a year.[2]