Editorial illustration for Jack Dorsey's Block slashes over 4,000 jobs, cutting nearly half staff
Block Cuts 4,000 Jobs as Dorsey Shifts to AI Strategy
Jack Dorsey's Block slashes over 4,000 jobs, cutting nearly half staff
Block, the payments and fintech firm co‑founded by Twitter’s former chief, is slashing its workforce by more than 4,000 roles – roughly half of its employees. The cuts come as the company pivots toward artificial‑intelligence products, a move Dorsey framed as a strategic bet rather than a rescue effort. While the headline numbers look stark, the CEO insists the decision isn’t driven by a cash crunch; instead, he points to a rising gross‑profit line and expanding customer reach as evidence that the business remains healthy.
Analysts have noted that the layoffs could streamline development pipelines and accelerate the rollout of new AI‑enabled services. Yet the scale of the reduction raises questions about how quickly Block can sustain growth while trimming its talent pool. It’s a gamble that puts the firm’s future trajectory on a tightrope, balancing short‑term cost discipline against long‑term innovation ambitions.
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Jack Dorsey's Block cuts nearly half of its staff in AI gamble.
Jack Dorsey's Block cuts nearly half of its staff in AI gamble The company will shrink by more than 4,000 jobs. The company will shrink by more than 4,000 jobs. "We're not making this decision because we're in trouble," Dorsey says.
Gross profit continues to grow, we continue to serve more and more customers, and profitability is improving. 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. And that's accelerating rapidly." Dorsey opted to do a big layoff instead of gradual cuts because "I'd rather take a hard, clear action now and build from a position we believe in than manage a slow reduction of people toward the same outcome." The layoffs were announced on Thursday as part of the company's Q4 2025 earnings.
In a shareholder letter, Dorsey says that "We believe Block will be significantly more valuable as a smaller, faster, intelligence-native company.
Block’s latest move slashes more than 4,000 positions, shrinking the workforce from over 10,000 to under 6,000. Why? Jack Dorsey frames the cuts as an AI‑focused gamble, not a reaction to financial distress.
He stresses that gross profit is still climbing and that the company continues to serve an expanding customer base. But does the shift toward artificial‑intelligence‑driven products justify such a drastic reduction? The announcement offers no detail on how AI will reshape operations, leaving it unclear whether the expected efficiencies will materialise.
Dorsey’s post on X underscores confidence, yet the scale of the layoff suggests a significant strategic pivot. Without insight into the specific AI initiatives or projected cost savings, observers must watch for concrete outcomes. For now, Block’s headcount has been halved, its profit trajectory appears positive, and the success of its AI bet remains an open question.
Further Reading
- Twitter's Jack Dorsey Slashes 4,000 Jobs at Block Because of AI - BeInCrypto
- Block Lays Off 4000 Employees. Read Jack Dorsey's Memo - Business Insider
- Block (XYZ) Surges 25% After Raising Profit Outlook - Bitcoin Magazine
- Jack Dorsey slashes 40% of Block staff despite rising profits - TheStreet
- Block Lays Offs Nearly Half Its Workforce in AI-Driven Overhaul - MLQ.ai
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Common Questions Answered
How many jobs is Block cutting, and what percentage of its workforce does this represent?
Block is slashing over 4,000 jobs, which represents approximately half of its total workforce. The company will be reducing its employee count from over 10,000 to under 6,000 employees.
Why is Jack Dorsey reducing Block's workforce, according to his statements?
Dorsey frames the job cuts as a strategic pivot toward artificial intelligence products, not as a response to financial troubles. He emphasizes that the company's gross profit continues to grow, customer reach is expanding, and the intelligence tools they are creating will enable a new way of working with smaller, flatter teams.
What is Block's current perspective on its financial health despite the massive layoffs?
According to Dorsey, Block is not making these job cuts because the company is in financial trouble. He points to continuing growth in gross profit, an expanding customer base, and improving profitability as evidence of the company's strong financial position.