Jack Dorsey’s Block cuts nearly half of its staff in AI gamble | The Verge
Summary
Jack Dorsey's Block is cutting nearly half of its workforce, reducing its staff from over 10,000 to less than 6,000, as it shifts focus to becoming an 'intelligence-native' company driven by AI advancements.
Why It Matters
This significant workforce reduction highlights the growing trend of companies leveraging AI to streamline operations and enhance efficiency. It raises questions about the future of jobs in tech and the implications of AI on employment and company structures.
Key Takeaways
- Block is reducing its workforce by nearly half, impacting over 4,000 jobs.
- The layoffs are part of a strategic shift towards becoming an 'intelligence-native' company.
- Dorsey emphasizes the importance of adapting to AI tools for operational efficiency.
- The decision reflects a broader trend of companies restructuring in response to technological advancements.
- Block's profitability and customer base continue to grow despite the layoffs.
TechAINewsJack Dorsey’s Block cuts nearly half of its staff in AI gambleThe company will shrink by more than 4,000 jobs.The company will shrink by more than 4,000 jobs.by Jay PetersFeb 26, 2026, 10:11 PM UTCLinkShareGiftBloomberg via Getty ImagesJay Peters is a senior reporter covering technology, gaming, and more. He joined The Verge in 2019 after nearly two years at Techmeme.Jack Dorsey’s Block, the financial tech company that runs Square and the Cash app, is cutting its workforce by “nearly half” and axing more than 4,000 jobs. The company will shrink from more than 10,000 people to less than 6,000, Dorsey says in a post on X. And the reason why? AI.“We’re not making this decision because we’re in trouble,” Dorsey says. “Our business is strong. Gross profit continues to grow, we continue to serve more and more customers, and profitability is improving. 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. 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...
