Block layoffs: Jack Dorsey's Block, the company behind Square, Cash App and Afterpay, is laying off nearly half of its staff as part of an overhaul to embrace AI across its operations.
As part of the Block layoffs, over 4,000 employees will be let go to embed “intelligence tools,” Dorsey, the co-founder of the company, said in a letter to shareholders on Thursday.
Block has been restructuring its business model and staffing since 2024 as the company’s stock has lagged. Shares of Block soared as much as 27% in extended trading following the announcement.
The company has also invested heavily in artificial intelligence to enable efficient operations, including building its own AI tool called Goose.
The Block layoffs come after rolling job eliminations that have often been tied to annual performance reviews.
The job cuts at Block is the latest case among fintech and the broader technology sector, where companies have eliminated workforce while pointing at AI as the catalyst. Companies ranging from Amazon to Salesforces have cited the technology as the rationale behind letting thousands of employees go.
The layoffs signal how the AI boom is translating from hype into workforce changes, fueling long-held concerns among workers and economists that the technology could eliminate roles even as it boosts productivity and profits.
Jack Dorsey says most companies will follow
In a statement Thursday, Block co-founder Jack Dorsey said AI has changed the way companies work, adding that his firm was late to the party.
“Intelligence tools have changed what it means to build and run a company. We're already seeing it internally. A significantly smaller team using the tools can do more and do it better”
Dorsey indicated that more companies are likely to follow suit.
“I don't think we're early to this realisation. I think most companies are late,” he said.
“Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes. I’d rather get there honestly and on our own terms than be forced into it reactively,” Dorsey added.
Block did not provide much details about how the AI technology was going to make specific roles unnecessary. Dorsey’s bet is that building AI tools internally — rather than being disrupted by them — can sustain a leaner company.
What benefits will employees receive?
In a post on X, Jack Dorsey listed a host of benefits that the laid off employees of Block will receive.
“If you're one of the people affected, you'll receive your salary for 20 weeks + 1 week per year of tenure, equity vested through the end of may, 6 months of health care, your corporate devices, and $5,000 to put toward whatever you need to help you in this transition,” he wrote.
However, people outside the US will receive a smaller amount, Dorsey said, adding that the exact details are being worked out and will vary based on local requirements.
“Everyone will be notified today, whether you're being asked to leave, entering consultation, or asked to stay," he said.
The company said it expects to incur roughly $450 million to $500 million in restructuring charges.