AI over humans? Jack Dorsey's Block cuts 4,000 jobs despite strong growth

Twitter co-founder Jack Dorsey on Thursday announced that his financial technology company Block will cut nearly half of its workforce, citing rapid changes driven by artificial intelligence tools and a shift toward smaller, flatter teams.

In a note to employees posted on social media platform X, Dorsey said over 4,000 employees would either be laid off or enter consultation, calling it “one of the hardest decisions in the history of our company.”

“Today we’re making one of the hardest decisions in the history of our company,” Dorsey wrote. “We’re reducing our organization by nearly half.”

He said those leaving the company would receive 20 weeks of salary plus one additional week for every year of tenure, equity vested through the end of May, six months of healthcare coverage, corporate devices, and $5,000 in transition support.

Employees outside the United States would receive similar support in line with local regulations.

Dorsey stressed that the layoffs were not a result of financial distress.

“We’re not making this decision because we’re in trouble. Our business is strong. Gross profit continues to grow, we continue to serve more and more customers, and profitability is improving,” he said.

He pointed to rapid advances in “intelligence tools” the company is building and deploying internally, saying smaller, flatter teams paired with AI systems are “enabling a new way of working which fundamentally changes what it means to build and run a company.”

Block, which owns payments platform Square and the Cash App mobile payments service, has invested heavily in technology and product development as competition intensifies in digital payments and financial services.

Dorsey said he opted for a single, sweeping reduction rather than multiple rounds of layoffs over time.

“Repeated rounds of cuts are destructive to morale, to focus, and to the trust that customers and shareholders place in our ability to lead,” he wrote.

“A smaller company also gives us the space to grow our business the right way, on our own terms, instead of constantly reacting to market pressures,” he added.

The chief executive said communication channels within the company would remain open through Thursday evening (Pacific time) to allow employees to say goodbye, and that he would host a live video session to address staff.

“To those of you leaving… I’m grateful for you, and I’m sorry to put you through this. You built what this company is today,” Dorsey wrote.

Dorsey said he would “own” the decision and asked the remaining employees to help build a company with intelligence “at the core of everything we do,” including how it works, creates products, and serves customers.