Jack Dorsey announces over 4,000 layoffs to transform Block into a leaner, artificial intelligence-driven company.
Jack Dorsey announced on February 26, 2026 that Block Inc. will cut over 4,000 jobs, reducing its headcount from over 10,000 employees to just under 6,000. The decision is part of a restructuring strategy aimed at making the company ‘smaller,’ ‘flatter,’ and AI-oriented, with Dorsey describing artificial intelligence tools as a factor that is fundamentally changing the way Block operates.
In a post published on X on Thursday, Dorsey wrote:
‘A decision of this magnitude comes with risks, but so does standing still. We conducted a thorough review to determine the roles and people needed to grow the business reliably, and we stress-tested these decisions from multiple angles. I accept that we may have gotten some of them wrong, and we have built in some flexibility to account for that and do the right thing for our customers.’
Dorsey opted for a single, immediate cut rather than phased layoffs over time, in order to avoid prolonged uncertainty. Affected employees will receive 20 weeks of pay, plus one additional week for each year of tenure. Despite the scale of the move, Dorsey emphasized that the company remains financially sound and that gross profit continues to grow.
Markets responded positively to the news: after closing the regular session at $54.53 per share, Block’s stock surged more than 20% in after-hours trading. Shares have nonetheless lost approximately 16% over the past year, with the company’s market capitalization standing at $31 billion.
Thursday’s cuts come roughly one year after Block had already laid off more than 900 employees. In early February, Bloomberg had reported that the company was considering reductions of up to 10% of its workforce — an estimate that proved to be far below the actual scale of the measure.
In his message to employees, Dorsey concluded:
‘To those leaving… I am grateful for you and I am sorry for what I am asking you to face. You built what this company is today. To those staying… I made this decision and I own it. What I am asking of you is to build with me.’
