Jack Dorsey’s Block Cuts 4,000 Jobs in AI Overhaul, Workforce Slashed by Nearly Half

In one of the biggest tech layoffs of the year, Jack Dorsey has announced that fintech giant Block will cut more than 4,000 jobs, reducing its global workforce by nearly half. The decision brings the company’s employee count down from over 10,000 to just under 6,000.

Dorsey described the move as one of the most difficult decisions in the company’s history. In a detailed public statement, he explained that the layoffs are not due to financial weakness but are part of a long-term structural shift driven by artificial intelligence and operational redesign.

AI at the Core of the Overhaul

According to Dorsey, Block is undergoing a transformation centered around “intelligence tools” and leaner team structures. He stated that the company’s business remains strong, with gross profit continuing to grow and profitability improving.

“We’re not making this decision because we’re in trouble,” he said, clarifying that the restructuring reflects a shift in how companies will operate in the AI era.

Dorsey explained that he had two options: gradually reduce staff over time or take a decisive step immediately. He chose the latter, saying a slow reduction would create prolonged uncertainty and harm morale.

The restructuring signals a significant pivot toward AI-driven workflows. Dorsey emphasized that smaller, flatter teams supported by advanced intelligence tools are reshaping how products are built and managed.

Impact on Square and Cash App

Block, which owns Square and Cash App, is one of the most prominent players in the fintech space. The sharp workforce reduction marks one of the most dramatic contractions in the sector this year.

The company confirmed that affected employees will receive substantial severance support. The package includes 20 weeks of salary, an additional week of pay per year of service, equity vesting through the end of May, six months of healthcare coverage, and a $5,000 transition support payment. Employees will also retain their corporate devices. International compensation packages will vary depending on local regulations.

Dorsey stated that all employees would be informed on the same day about their status. He also committed to maintaining open communication channels temporarily to allow colleagues to say their goodbyes in a transparent and respectful manner.

A High-Risk but Strategic Bet

The layoffs represent a bold bet on AI as the future foundation of Block’s operations. Dorsey acknowledged the risks involved in such a large-scale decision but argued that standing still would be equally risky in a rapidly evolving technological landscape.

He said the company will now rebuild with intelligence at the center of everything — from internal processes to customer-facing tools. The shift may also allow businesses using Block’s platforms to create and deploy features more efficiently.

As AI adoption accelerates across industries, Block’s restructuring highlights how major tech firms are adapting to changing business models. The move could set a precedent for other fintech and technology companies navigating similar transitions in the coming years.