Block Slashes 40% of Workforce as Jack Dorsey Bets Big on AI

[mendez]

Jack Dorsey’s payments firm Block Inc. is cutting roughly 40% of its staff in a sweeping restructuring move driven by rapid AI adoption inside the company.

In a letter shared on X, Dorsey said AI-powered “intelligence tools,” combined with smaller, flatter teams, are fundamentally changing how companies operate. Rather than conducting gradual layoffs over time, he opted for immediate action to avoid repeated morale hits. After the cuts, Block’s workforce will shrink from over 10,000 employees to just under 6,000.

Affected employees will receive 20 weeks of pay plus one additional week per year of tenure, six months of healthcare coverage, their corporate devices and $5,000 in additional support. Dorsey suggested other companies will soon follow, arguing most are “late” to recognizing AI’s structural impact on business operations.

[bonk]

nothing boosts shareholder confidence like deleting 4,000 jobs overnight