Block CEO Jack Dorsey Announces 4,000 Layoffs Due to AI, Stock Surges as Result

The age of AI is in full swing, but for some workers, it is ushering in uncertainty rather than opportunity.

Jack Dorsey, founder of Twitter and now CEO of Block, has announced that Block will lay off nearly half its employees to implement more AI tools across its tech platforms.

Block, which owns Cash App and Square, will cut 4,000 employees, which makes up 40% of its employees.

In a memo issued by Dorsey, he wrote, “We’re reducing our organization by nearly half, from over 10,000 people to just under 6,000.”

Block CFO Amrita Ahuja followed up on Dorsey’s memo by adding, “We see an opportunity to move faster with smaller, highly talented teams using AI to automate more work.”

we’re making @blocks smaller today. here’s my note to the company.

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today we’re making one of the hardest decisions in the history of our company: we’re reducing our organization by nearly half, from over 10,000 people to just under 6,000. that means over 4,000 of you are…

— jack (@jack) February 26, 2026

Per The New York Times:

Block, the financial technology company that owns Square, Cash App and Tidal, said on Thursday that it was cutting 40 percent of its work force as it embraced new artificial intelligence tools.

About 4,000 employees are expected to lose their jobs, Jack Dorsey, the company’s top executive, said in a social media post.

The cuts, made as Block reported strong financial results for its most recent quarter, are perhaps the most striking example so far of a technology company’s making plans to eliminate employees because of A.I.

Mr. Dorsey wrote in his post that he wanted to act decisively rather than “cut gradually over months or years as this shift plays out.”

Despite Block announcing cuts, Wall Street saw the move as a buy signal, and stocks surged 20%.

Block just cut 40% of their workforce because of AI and were rewarded with a massive stock surge. Other companies are going to want to recreate this. Job loss could get very ugly, very quick. https://t.co/ScdtQKHIcW

— Krystal Ball (@krystalball) February 26, 2026

Harvard Business Review reported that CEOs from Fortune 500 companies, such as Ford, Salesforce, Amazon, and JPMorgan Chase, have stated that in the near future, many white-collar jobs at their companies will be replaced with AI.

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