Jack Dorsey Slashes Block Workforce by 4,000 in Sweeping AI-Driven Overhaul

Dorsey said AI-driven efficiency requires smaller teams, causing the biggest layoffs in Block’s history.

Jack Dorsey announced that Block is cutting its workforce by nearly half, cutting more than 4,000 employees and bringing headcount from more than 10,000 to just under 6,000.

In a letter shared publicly with X, Dorsey described the move as “one of the most difficult decisions in the company’s history” and said all employees will be notified the same day whether they are asked to leave, go into consultation, or stay.

Big Layoffs on the Block

He said that the affected workers will receive 20 weeks of salary and one additional week per year of stay, the income received at the end of May, six months of health care, their company equipment and $5,000 to support their changes.

Employees outside the United States will receive similar support. Details may vary according to local requirements. Dorsey said the decision was not due to financial difficulties, adding that the company’s business remains strong. Instead, he added,

“But something has changed. We’re realizing that the intellectual tools we’re building and using, combined with small and agile teams, are enabling a new way of working that’s fundamentally changing what it means to build and run a company. And that’s happening fast.”

Dorsey said he considered reducing staff gradually over months or years, but chose to act quickly. He said repeated layoffs would damage morale, focus, and trust among customers and shareholders. He acknowledged that some decisions may not seem right and that flexibility is built in to accommodate that while continuing to serve clients.

Dorsey Admits Being Hired Too Much

The layoff announcement drew mixed reactions on social media. Some users described the termination terms as kind, while others focused on concerns about artificial intelligence replacing human roles. One user, Will Slaughter, tweeted that the cuts were less about AI and more about management decisions, while responding to a jibe at Block, which had tripled its number from 3,900 in December 2019 to 12,500 in December 2022.

He described the downgrade as a relief from “the overindulgence of COVID” and attributed it to management incompetence rather than technological change. In response, Dorsey admitted that he hired more during the violence.

Some users criticized the optics of quoting AI in the teardown text in small caps. Some expressed concern that AI-linked job cuts could become a wider trend as the company’s stock price rose 24% in after-hours trading.