In one of the most significant workforce reductions in the tech sector this year, Jack Dorsey has announced that more than 4,000 employees will be laid off at Block. The move will shrink the payments company’s workforce from over 10,000 to just under 6,000 employees, marking nearly a 50% reduction.
Dorsey, who co-founded both Twitter and Block, described the decision as one of the toughest in the company’s history. In a detailed post shared on X, he explained that the layoffs were not triggered by financial distress but by a strategic shift in how the company intends to operate in the era of artificial intelligence.
Not a Financial Crisis, Says Dorsey
Addressing speculation, Dorsey clarified that the company remains financially stable. According to him, Block’s gross profit continues to grow, and overall profitability is improving. He emphasized that the restructuring is not a reactive measure to declining performance but rather a proactive step toward long-term transformation.
Dorsey said he faced two possible paths: implement gradual layoffs over an extended period or take decisive action immediately. He opted for the latter, arguing that slow, rolling job cuts would hurt morale and prolong uncertainty. “I’d rather take a hard, clear action now and build from a position we believe in,” he noted.
AI and Leaner Teams at the Core
The core reason behind the sweeping layoffs lies in what Dorsey described as a “structural shift” fueled by intelligence tools and flatter organizational structures. He said the intelligence-driven tools Block is building and deploying internally are already reshaping workflows and redefining what it means to operate a company.
According to Dorsey, pairing advanced AI systems with smaller, more agile teams allows for greater efficiency and innovation. The company now plans to rebuild itself with “intelligence at the core of everything we do,” integrating AI not just into products but also into internal operations and decision-making processes.
Block owns widely used fintech platforms such as Square and Cash App, both of which are expected to play a significant role in the company’s AI-driven roadmap. Dorsey hinted that future tools may allow businesses to directly build features using Block’s capabilities, signaling a more developer-centric and automation-focused ecosystem.
Severance and Employee Support
Employees impacted by the layoffs will receive 20 weeks of salary, along with an additional week of pay for every year of service. Equity will vest through the end of May, and affected staff will receive six months of health coverage. Additionally, departing employees will be allowed to keep their corporate devices and receive $5,000 in transition support. International severance packages will vary depending on local regulations.
In a move aimed at maintaining transparency, Dorsey said all employees would be informed on the same day whether they were leaving, entering consultation, or remaining with the company. Communication channels will remain open temporarily to allow colleagues to say goodbye. He acknowledged that the process may feel uncomfortable but stressed the importance of handling it in a “human” rather than purely procedural way.
A High-Risk, High-Conviction Move
Dorsey openly acknowledged the risks involved in cutting nearly half the workforce. However, he argued that remaining stagnant in a rapidly evolving technological landscape carries even greater risks.
The restructuring marks one of the most dramatic workforce contractions in the fintech sector this year and underscores how deeply artificial intelligence is reshaping corporate strategies across industries. As Block transitions into its next chapter, the company is betting that a leaner structure powered by AI will position it for sustained growth in an increasingly competitive digital payments market.
