Jack Dorsey’s Block Slashes Workforce by Half in AI Strategy
Jack Dorsey’s Block, which operates Square and the Cash App, has announced significant workforce reductions. The company plans to cut nearly 4,000 jobs, which represents a nearly 50% decrease in its total workforce.
Workforce Reduction Details
Block’s staff will decrease from over 10,000 to under 6,000 employees. Dorsey shared this news in a post on X, emphasizing that the layoffs are part of a strategic shift towards artificial intelligence (AI) integration.
Reason Behind Layoffs
- Dorsey stated that the decision is not a sign of financial trouble.
- Block continues to experience growth in gross profit and customer base.
- Profitability has shown marked improvement.
Dorsey explained that advancements in intelligence tools are transforming how the company operates. The move towards smaller, more efficient teams is seen as a crucial step in this evolution.
Strategic Shift and Future Outlook
In a shareholder letter during the Q4 2025 earnings announcement, Dorsey expressed confidence in the company’s future. He emphasized the belief that a smaller, more agile, and intelligence-focused Block will be more valuable in the long run.
By opting for a substantial layoff rather than gradual reductions, Dorsey aims to establish a more decisive and robust organizational structure. “I’d rather take a hard, clear action now,” he noted, indicating a proactive approach to the company’s transformation.
The focus moving forward will be on leveraging AI to enhance productivity and redefine operational efficiency within Block.
