OAKLAND, Calif. — Block Inc. said it is cutting more than 4,000 jobs — about 40% of its workforce — citing the growing role of artificial intelligence in how the company operates.
Investors welcomed the news as its stock price shot up.
The financial technology firm, known for its payment services Square and Cash App, will reduce its headcount from roughly 10,000 employees to just under 6,000 after the layoffs, according to a letter to shareholders from CEO Jack Dorsey that was posted on social media and shared with investors.
“The core thesis is simple. Intelligence tools have changed what it means to build and run a company,” Dorsey wrote in the letter, adding that a “significantly smaller team, using the tools we’re building, can do more and do it better.”
Strong Financial Performance
The layoffs come as Block reported strong recent financial results, including a 24% jump in fourth-quarter gross profitcompared with a year earlier, underscoring that the cuts were not prompted by poor performance, analysts said.
Dorsey and other executives emphasized that the job cuts are intended to accelerate Block’s transition to an “intelligence-native” operating model where AI and automation play a central role in productivity, rather than as a response to distress.
In addition to the AI rationale, Dorsey acknowledged that the company had expanded its workforce rapidly during earlier growth phases, a factor he said added complexity to managing the business.
Growing Job Cuts
Block’s announcement adds to a growing list of major technology companies cutting jobs as the industry restructures around emerging technologies, with other employers such as Amazon and eBay also reducing head counts, though few have publicly tied cuts as directly to AI adoption.
Affected employees will receive support packages, including severance pay and continued health benefits, with specific terms varying by region, Block said.
