Jack Dorsey's Block Cuts Nearly 40% of Its Workforce — And Says AI Will Fill the Gaps
Block slashes its headcount from over 12,000 to roughly 7,500 employees, citing AI-driven productivity gains as a core reason the company can operate leaner.
The Largest AI-Motivated Layoff Yet
Jack Dorsey isn't being subtle about it. Block, the fintech company behind Square, Cash App, and Tidal, is cutting approximately 40 percent of its workforce — a reduction from over 12,000 employees to roughly 7,500. In an internal memo that was made public, Dorsey stated plainly that artificial intelligence has made many roles redundant and that the company intends to operate with a permanently smaller team going forward.
This isn't a restructuring dressed up in corporate euphemisms. Dorsey's memo explicitly names AI as the primary driver, arguing that tools built internally over the past eighteen months have automated enough work across engineering, support, and operations to make the cuts sustainable without reducing output.
The Numbers Behind the Decision
Block reported strong fourth-quarter earnings in February, with revenue up 14 percent year over year and gross profit growing 22 percent. The company isn't cutting from a position of weakness — it's cutting because it believes it can maintain or exceed current performance with fewer people.
Dorsey pointed to internal AI coding assistants that have reduced engineering cycle times by an estimated 35 percent, automated customer support systems handling 60 percent of Cash App inquiries without human intervention, and AI-driven fraud detection that replaced three separate manual review teams.
What It Means for the Industry
Block's move is significant because of its scale and transparency. While other companies have quietly trimmed headcounts and attributed the cuts to market conditions, Dorsey is making an explicit case that AI has fundamentally changed how many people his company needs. That's a message every CEO in tech is hearing, even if most aren't saying it out loud yet.
The layoffs will be completed by the end of Q2 2026. Affected employees will receive severance packages of four months' base salary, extended healthcare coverage, and job placement assistance.
Sources: The Verge (March 6, 2026), Reuters (March 6, 2026), Bloomberg (March 6, 2026)