Jack Dorsey’s Block to Cut Nearly Half of Workforce in AI Shift
Jack Dorsey has announced sweeping job cuts at his financial technology company Block, saying advances in artificial intelligence are reshaping how businesses are built and run.
In a letter to shareholders, Dorsey said Block plans to reduce its workforce from about 10,000 employees to fewer than 6,000, arguing that AI has “fundamentally changed” the structure and needs of modern companies. He added that many firms are likely to follow a similar path over the next year.
Block, which owns payment and media platforms including Square, Cash App and Tidal, has carried out several rounds of redundancies since 2024. This is the first time the company has explicitly linked the layoffs to the adoption of AI technology.
The announcement places Block among a growing list of major technology companies cutting jobs as they redirect resources toward artificial intelligence. Amazon recently announced tens of thousands of layoffs, while Meta, Microsoft and Google have also reduced staff amid rising AI investment.
Speaking earlier this year, Meta chief executive Mark Zuckerberg said he expects AI to dramatically change the workplace by 2026, with tasks once handled by large teams increasingly completed by smaller groups or even individuals.
AI-powered tools that automate software development and other technical work have fuelled concerns about long-term job losses, although some analysts say the near-term impact may be overstated.
Despite the layoffs, Block reported strong demand for its products, with profits rising toward the end of last year. The company said it expects to incur up to $500m (£370m) in restructuring costs as it transitions to the new strategy. Block’s shares jumped more than 20% in extended trading following the announcement.
Dorsey, who also co-founded Twitter, said he believes many companies are already behind the curve in adapting to AI-driven change, warning that further disruption is inevitable.
