Block Slashes Workforce by 40% in AI-Driven Restructuring
Block Inc., led by CEO Jack Dorsey, is cutting approximately 40% of its workforce—reducing headcount from over 10,000 employees to under 6,000—as part of a strategic pivot toward an AI-first operational model. The move, one of the largest percentage layoffs in recent tech history, sparked a 20% surge in after-hours trading, signaling investor approval.
Dorsey emphasized the transformative role of AI tools in reshaping corporate structures, asserting the decision reflects efficiency gains rather than financial distress. Affected employees will receive 20 weeks of pay plus tenure-based benefits. "We're not making this decision because we're in trouble," Dorsey wrote, underscoring Block's growing gross profit and the potential for flatter, more agile organizations powered by automation.
