Jack Dorsey Axes Half Workforce

Jack Dorsey’s Block just axed over 4,000 jobs—nearly half its workforce—to make way for AI, exposing the harsh reality of tech elites prioritizing machines over American workers.

Story Snapshot

Block announces layoffs of more than 4,000 employees, over 40% of its 10,205 staff, explicitly due to AI tools enabling smaller teams.
CEO Jack Dorsey cites AI for coding and text generation as key to a “new way of working,” rejecting gradual cuts to preserve morale.
Company remains financially strong with over $10B in 2025 gross profit, yet stock surges 23% after announcement.
This marks Block’s first AI-justified layoffs, following prior non-AI reductions and industry trends like Amazon’s cuts.
Employees get a brief window for farewells via Slack and email, highlighting human cost amid automation push.

Announcement Details

Block Inc., the fintech giant behind Square and Cash App, revealed on February 26, 2026, plans to eliminate more than 4,000 full-time positions by the end of Q2 fiscal 2026. This cut targets nearly half of its December 2025 workforce of 10,205 employees. Co-founder and CEO Jack Dorsey announced the move through an X post and internal employee note. He stressed that AI tools for tasks like coding and text generation allow smaller, flatter teams to achieve greater efficiency. The company explicitly linked these layoffs to AI adoption, a departure from previous rounds.

Dorsey’s Rationale and Company Health

Dorsey explained the decision enables a fundamental shift in operations without financial distress. Block reported gross profits exceeding $10 billion in 2025, up 17% year-over-year, confirming robust health. Prior layoffs, such as 931 jobs in 2025 representing 8% of staff, focused on performance and strategy rather than AI. Dorsey rejected incremental reductions, arguing they erode trust and morale. He opted for swift action despite the “awkward” human elements involved. Investors responded positively, driving a 23% after-hours stock surge.

Employee Impact and Communications

Affected employees number over 4,000, facing immediate job loss in a sector gripped by AI-driven disruption. Dorsey planned a live video address and kept Slack and email channels open until Thursday evening for farewells, aiming to maintain a human touch. This approach contrasts with colder corporate cuts, yet underscores worker anxiety over automation replacing traditional roles. Remaining staff must adapt to AI-heavy workflows, redefining daily operations at Block’s Oakland headquarters and global sites.

Precedents like Amazon’s January 2026 layoffs of 16,000 to streamline layers highlight an industry pivot toward AI efficiency. Block’s move accelerates this trend in fintech, normalizing massive reductions for productivity gains. Tech workers nationwide confront rising job insecurity as companies embrace tools that automate routine engineering tasks once requiring weeks of human effort.

Broader Industry Implications

These layoffs signal AI’s transformative force across tech and fintech, pressuring competitors to follow suit. Dorsey’s emphasis on immediate, large-scale cuts sets a precedent for preserving company focus amid innovation. While short-term morale suffers, long-term gains include leaner structures boosting output. This development resonates with Americans weary of elite-driven policies that displace loyal workers, favoring unaccountable technology over family-sustaining jobs. Shareholder approval via stock gains reflects market endorsement of such ruthless efficiency.

Block’s history since its 2009 founding as Square includes multiple workforce trims since 2024, but none previously tied directly to AI. Dorsey’s background as X’s co-founder amplifies visibility, positioning him as a tech innovator. No external pressures drove the cuts; internal strategy and AI potential guided decisions. Uncertainties remain on exact post-layoff headcount and employee reactions, with limited independent expert views available.

Jack Dorsey just laid off 40% of staff. He said he's still hiring AI engineers. https://t.co/wJMmYNxxsL

— Jazz Drummer (@jazzdrummer420) February 27, 2026