Jack Dorsey's Block to Slash 4,000 Jobs in AI Restructuring

What to Know

4,000+ jobs will be eliminated at Jack Dorsey's Block as artificial intelligence reshapes the company
Dorsey shared a letter on X citing smaller, flatter teams powered by AI tools as the catalyst
Affected staff will receive 20 weeks of salary plus one week per year of tenure as severance
Bloomberg had earlier reported that 10% of Block's workforce faced cuts during performance reviews

Jack Dorsey's Block will eliminate more than 4,000 jobs in an AI-driven restructuring of the payments firm. Dorsey revealed the decision in a letter shared on X on February 26, saying AI tools and leaner teams are fundamentally changing how the company builds and operates.

Why Is Block Cutting 4,000 Jobs?

Block is shedding 4,000 positions because AI has made smaller, flatter teams far more productive, according to Dorsey. The co-founder wrote that intelligence tools the company is creating internally have enabled a new way of working, and that the shift is accelerating rapidly.

Dorsey said he faced two options: trim gradually over months or years, or act now. He chose immediate action, arguing that repeated rounds of layoffs destroy morale, erode focus, and undermine the trust customers and shareholders place in Block's leadership.

I had two options: cut gradually over months or years as this shift plays out, or be honest about where we are and act on it now. I chose the latter.
— Jack Dorsey, Co-founder of Block

What Severance Will Block Employees Receive?

Displaced staff will keep their salary for 20 weeks, plus one extra week for every year of tenure, Dorsey confirmed. The package also includes six months of health care, corporate devices, and a $5,000 stipend to help with the transition to a new role.

What This Means Going Forward

The layoffs at Block reflect a wider trend across fintech and tech firms using AI to consolidate operations. Bloomberg reported earlier this month that roughly 10% of Block's workforce could be cut during annual performance reviews as part of a broader overhaul. Dorsey's decisive move raises questions about how aggressively other companies will pursue AI-driven restructuring in 2026.