Block cuts 40% of staff as CEO credits AI tools
Feb 27th 2026
Block will lay off over 4,000 workers, cutting headcount by 40% while CEO Jack Dorsey cites AI automation as the rationale and predicts similar moves across the corporate world.
- Block is cutting 40% of its workforce, laying off more than 4,000 people and reducing headcount to just under 6,000.
- Jack Dorsey said intelligence tools let smaller teams do more and predicted most companies will make similar structural changes within a year.
- Block says the move is strategic, not a sign of weakness, and that gross profit continues to grow.
- Affected employees will receive at least 20 weeks of severance, equity vesting through the end of May, six months of health care, corporate devices, and an extra $5,000 payment.
- Investors pushed Block shares up about 24% after the announcement, and the layoffs mirror wider tech cuts as AI companies like Anthropic and OpenAI roll out new enterprise tools.