Jack Dorsey has laid off about 40% of employees at Block Inc. as the company moves to rely more on artificial intelligence.
The payments firm will cut its workforce from over 10,000 to just under 6,000 workers.
In a message shared on X, Dorsey described the decision as one of the hardest in the company’s history.
“Today we’re making one of the hardest decisions in the history of our company,” he wrote. “That means over 4,000 of you are being asked to leave or entering into consultation.”
He said the cuts are part of a shift toward smaller teams powered by AI tools.
Dorsey stressed that the move is not due to financial trouble.
“We’re not making this decision because we’re in trouble,” he wrote. “Our business is strong. Gross profit continues to grow.”
Block recently reported quarterly revenue of $6.25 billion and gross profit of $2.9 billion.
Instead, Dorsey said advances in “intelligence tools” are changing how companies operate.
“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,” he said.
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He added that he chose a single round of layoffs rather than gradual cuts.
“I had two options: cut gradually over months or years… or be honest about where we are and act on it now. I chose the latter,” he wrote.
Employees affected will receive 20 weeks of pay, plus one extra week for every year of service. Equity will vest through the end of May. The package also includes six months of healthcare, retention of work devices and a $5,000 transition payment.
“Everyone will be notified today, whether you’re being asked to leave, enter consultation, or asked to stay,” Dorsey said.
Addressing those leaving, he wrote: “You built what this company is today… This decision is not a reflection of what you contributed.”
Block’s shares rose sharply after the announcement, as some investors backed the shift to a leaner, AI-focused structure.
However, the scale of the cuts has drawn criticism, adding to wider concerns in the tech industry about job losses linked to artificial intelligence.
Jack Dorsey has laid off about 40% of employees at Block Inc. as the company moves to rely more on artificial intelligence.
The payments firm will cut its workforce from over 10,000 to just under 6,000 workers.
In a message shared on X, Dorsey described the decision as one of the hardest in the company’s history.
“Today we’re making one of the hardest decisions in the history of our company,” he wrote. “That means over 4,000 of you are being asked to leave or entering into consultation.”
He said the cuts are part of a shift toward smaller teams powered by AI tools.
Dorsey stressed that the move is not due to financial trouble.
“We’re not making this decision because we’re in trouble,” he wrote. “Our business is strong. Gross profit continues to grow.”
Block recently reported quarterly revenue of $6.25 billion and gross profit of $2.9 billion.
Instead, Dorsey said advances in “intelligence tools” are changing how companies operate.
“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,” he said.
He added that he chose a single round of layoffs rather than gradual cuts.
“I had two options: cut gradually over months or years… or be honest about where we are and act on it now. I chose the latter,” he wrote.
Employees affected will receive 20 weeks of pay, plus one extra week for every year of service. Equity will vest through the end of May. The package also includes six months of healthcare, retention of work devices and a $5,000 transition payment.
“Everyone will be notified today, whether you’re being asked to leave, enter consultation, or asked to stay,” Dorsey said.
Addressing those leaving, he wrote: “You built what this company is today… This decision is not a reflection of what you contributed.”
Block’s shares rose sharply after the announcement, as some investors backed the shift to a leaner, AI-focused structure.
However, the scale of the cuts has drawn criticism, adding to wider concerns in the tech industry about job losses linked to artificial intelligence.
The development adds to a growing trend of companies linking job cuts to AI adoption. In late 2025, Nestlé and HP also announced workforce reductions as they expanded the use of artificial intelligence and automation in parts of their operations.