Block to cut 40% of workforce as AI continues to reshape job markets

The move will eliminate more than 4,000 positions, bringing the company’s total headcount to just under 6,000.

In a statement to shareholders and employees, co-founder Jack Dorsey said the decision reflects structural changes driven by artificial intelligence and the company’s long-term strategy.

“Today we’re making one of the hardest decisions in the history of our company,” he wrote, adding that the shift toward smaller, flatter teams supported by AI tools is fundamentally changing how businesses are built and operated. “A significantly smaller team, using the tools we’re building, can do more and do it better. And intelligence tool capabilities are compounding faster every week,” Dorsey said.

He emphasized that the reductions are not tied to financial difficulties. “Our business is strong… gross profit continues to grow,” he noted, describing the decision as a proactive step to adapt quickly rather than implement gradual layoffs over time.

Dorsey said he chose to take “a hard, clear action now” instead of cutting staff “gradually over months or years,” arguing that repeated rounds of layoffs can damage morale and focus.

According to the statement, affected employees will receive at least 20 weeks of salary, additional compensation based on tenure, equity vested through the end of May, six months of healthcare coverage and a $5,000 transition payment.

The announcement comes amid a broader wave of workforce reductions across the technology sector as companies integrate AI into operations.

Earlier, Qazinform reported that Australian software firm WiseTech Global and other tech companies also announced job cuts linked to AI adoption.