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Jack Dorsey’s Block cuts nearly half of its staff in AI gamble
| USA | technology | ✓ Verified - theverge.com

Jack Dorsey’s Block cuts nearly half of its staff in AI gamble

#Jack Dorsey #Block #Layoffs #Artificial Intelligence #Workforce Reduction #Square #Cash App #Corporate Strategy

📌 Key Takeaways

  • Block is reducing its workforce by nearly half, eliminating over 4,000 positions
  • The company is strategically pivoting toward AI-powered operations
  • Despite the layoffs, Block reports strong business performance with growing gross profit and improving profitability
  • CEO Jack Dorsey believes the company will be more valuable as a smaller, AI-focused organization

📖 Full Retelling

Jack Dorsey's Block, the financial tech company behind Square and Cash App, announced on Thursday during its Q4 2025 earnings report that it will cut its workforce by nearly half, eliminating more than 4,000 positions as part of a strategic pivot toward artificial intelligence operations. The company will shrink from its current size of over 10,000 employees to fewer than 6,000 workers, according to a post by Dorsey on X. Despite the drastic reduction in staff, Dorsey emphasized that the decision isn't due to financial troubles, stating that Block's business remains strong with growing gross profit, expanding customer base, and improving profitability. The radical restructuring comes as the company embraces AI technologies that Dorsey believes are fundamentally changing how businesses operate, enabling smaller, more efficient teams to accomplish more through intelligent automation and tools.

🏷️ Themes

Artificial Intelligence, Corporate Restructuring, Financial Technology

📚 Related People & Topics

Block

Topics referred to by the same term

Block or blocked may refer to:

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Layoff

Involuntary termination of employment of an employee due to business concerns

A layoff or downsizing is the temporary suspension or permanent termination of employment of an employee or, more commonly, a group of employees (collective layoff) for business reasons, such as personnel management or downsizing an organization. Originally, layoff referred exclusively to a temporar...

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Jack Dorsey

Jack Dorsey

American internet entrepreneur (born 1976)

Jack Patrick Dorsey (born November 19, 1976) is an American businessman, co-founder of Twitter, Inc. and CEO during 2007–2008 and 2015–2021, as well as co-founder, principal executive officer and chairman of Block, Inc. (developer of the Square financial services platform) and founder of Bluesky.

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Artificial intelligence

Artificial intelligence

Intelligence of machines

# Artificial Intelligence (AI) **Artificial Intelligence (AI)** is a specialized field of computer science dedicated to the development and study of computational systems capable of performing tasks typically associated with human intelligence. These tasks include learning, reasoning, problem-solvi...

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Connections for Block:

🌐 Netflix 3 shared
🏢 CoreWeave 1 shared
🏢 Dell Technologies 1 shared
👤 Jack Dorsey 1 shared
🏢 Warner Bros. 1 shared
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Original Source
Tech AI News 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. by Jay Peters Feb 26, 2026, 10:11 PM UTC Bloomberg via Getty Images Jay 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 will be significantly more valuable as a smaller, faster, intelligence-native company. Everything we do from here is in service of that.” Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates. Jay Peters AI News Tech Most Popular Most Popular Burger King will use AI to check if employees say ‘please’ and ‘thank you’ Hands on: I’m super impressed with the Galaxy S26 Ultra’s new Privacy Display Google and Samsung just launche...
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