Block, the financial technology company co-founded by Jack Dorsey, announced one of the largest layoffs in its history, reducing its workforce by nearly half. The cuts will impact over 4,000 employees, bringing total headcount from over 10,000 to under 6,000. Dorsey stated the move was driven by AI-driven efficiency enabling smaller, flatter teams, though he also admitted to over-hiring during the pandemic.
Jack Dorsey announced that Block is reducing its workforce by nearly half, cutting more than 4,000 employees. This brings total headcount from over 10,000 to just under 6,000.
Dorsey stated the move was one of the hardest decisions in the company’s history. All employees were notified the same day of their status.
He said the decision was not driven by financial distress, as the company’s business remains strong. Instead, Dorsey added, “But something has changed. We’re already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company.”
Affected employees will receive 20 weeks of salary plus one additional week per year of tenure. They will also receive equity vested through May, six months of health care, their corporate devices, and approximately $5,000.
The layoff announcement drew mixed reactions across social media. Some users described the severance as generous, while others focused on concerns about artificial intelligence replacing human roles.
One user, Will Slaughter, tweeted that the cuts were about unwinding an “insane COVID overhiring binge.” In response, Dorsey admitted to over-hiring during the pandemic.
Other users criticized the optics of citing AI in the layoff note. Some expressed concern that AI-linked job cuts could become a broader trend.
