Block, the financial services and digital payments company founded by Jack Dorsey, is cutting more than 4,000 jobs, nearly half of its global workforce, the company announced Thursday. The move reduces Block’s employee base from over 10,000 to under 6,000, a decision Dorsey framed as a necessary step to adapt to the growing capabilities of artificial intelligence.
Investors reacted positively to the news, with Block’s stock rising more than 24% in after-hours trading, according to reports. The cuts follow a similar pattern seen at other tech companies, most notably Twitter, after its acquisition by Elon Musk in 2022, where approximately 50% of the workforce was eliminated.
Dorsey, who too co-founded Twitter and currently serves as a board member of Block, explained the decision in a message to shareholders and a series of posts on X, the platform formerly known as Twitter. He argued that advancements in AI are fundamentally changing how companies are built and managed. “The tools of AI have changed what it means to build and run a company,” Dorsey wrote. “We’re seeing this already internally. A significantly smaller team, using the tools we’re creating, can do more with less and do it better. And the capabilities of these tools grow every week.”
The restructuring, Dorsey indicated, is not a response to financial distress but a proactive measure to streamline operations and capitalize on the potential of AI. “Repeated rounds of cuts are destructive to morale, to focus, and to the trust that customers and shareholders place in our ability to lead,” he stated. He predicted that most companies will arrive at a similar conclusion within the next year, suggesting Block is ahead of the curve in adapting to the changing technological landscape.
Dorsey acknowledged that Block had over-hired during the COVID-19 pandemic, a trend common among technology companies that experienced rapid growth during that period. As the economic climate normalizes, he suggested, the company’s structure became less efficient, prompting the need for a more streamlined approach leveraging automation and AI.
The layoffs at Block come as Dorsey has publicly expressed admiration for Musk’s approach to restructuring Twitter, despite also offering critical commentary on Musk’s leadership. Dorsey rolled his ownership stake in Twitter into Musk’s takeover, becoming a significant investor in X. He also launched Bluesky, a decentralized Twitter alternative, before stepping down from its board.
As of May 2025, Forbes estimated Dorsey’s net worth at $3.8 billion. Block, which operates Square, Cash App, and Tidal, has been a key component of his business ventures. The company’s future strategy will heavily rely on integrating AI tools to enhance efficiency and innovation, according to Dorsey’s statements.
