Block Inc. Announces Major AI-Driven Restructuring, Slashes 4,000 Jobs
Payments behemoth Block Inc., the powerhouse behind Square and Cash App, has made a shocking announcement: it is slashing nearly half its workforce. This move marks one of the most dramatic AI-driven layoffs in the history of technology.
The company’s CEO and co-founder, Jack Dorsey, unveiled plans to eliminate more than 4,000 positions. This reduction will bring the total headcount down from over 10,000 employees to just under 6,000. Dorsey directly attributed the cuts to advancements in artificial intelligence, stating, “The intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working.”
In a letter to shareholders, Dorsey projected that “within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes.” While the company anticipates incurring $450-500 million in restructuring charges, it has also raised its 2026 gross profit growth forecast to 18%.
The market responded favorably to the announcement, with Block’s stock surging 24% in extended trading. Employees affected by the layoffs will receive 20 weeks of salary and additional benefits. This move is being hailed by analysts as “a seminal moment” in the AI era, offering a glimpse into how technology may fundamentally reshape corporate structures in the future.
Source: CNBC