US EditionBlock Lays Off 40% of Workforce as It Goes All-in on AI Tools
CEO Jack Dorsey said the 40% workforce cut is a strategic shift to AI-driven operations, aiming to build smaller, more efficient teams and avoid repeated layoffs.
- On Thursday, Block $SQ announced it will cut about 40% of its workforce, more than 4,000 people, as CEO Jack Dorsey framed the move as a pivot to AI in a note shared on X.
- Dorsey opted for a single large reduction recently, describing the move as proactive and saying the company is not in trouble.
- Departing employees will receive 20 weeks' pay plus one week per year of tenure, equity vested through the end of May, six months of health care, corporate devices and $5,000; Block shares jumped 20% after hours.
- Critics say the AI explanation does not hold water, citing last year's $68 million party and headcount tripled between 2019 and 2022 alongside Square and Cash App separate organizational structures.
- Context-first: Analysts cautioned that extrapolating from Block may not reflect broader labor-market impacts, with about 5% to 7% of jobs in tech, Laura Ullrich said.
22 Articles
22 Articles
Jack Dorsey's Block Layoffs: What To Know About 50% Of Company Being Cut Amid AI Focus
Jack Dorsey, the technology entrepreneur who co-founded Twitter, announced that his company Block is cutting nearly 50% of its workforce in a public statement. Block, which is the company behind Square, Cash App and Afterpay, will now focus on artificial intelligence. Why did Jack Dorsey’s Block company cut nearly 50% of its employees? On Thursday, Dorsey announced that Block is cutting over 4,000 employees, which represents nearly half of the c…
Jack Dorsey, the founder of Twitter, has announced that he plans to fire 40% of Block's workers, the digital payment company he founded after creating the famous social network and...
Technology entrepreneur Jack Dorsey announced on Thursday, February 26, the dismissal of more than 4,000 employees of Block, an American technology company and financial service provider of which he is co-founder and current executive director.
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