Jack Dorsey's Block axes 'nearly half' of workforce in chilling sign of AI's impact on employment
By Jack Toledo
Daily Mail
Feb 26, 2026
Jack Dorsey, the CEO of Block, the parent company of Cash App, Square and Afterpay, would be taking on risk by investing in 'intelligence tools,' as the company cut more than 4,000 employees on Thursday
Jack Dorsey has axed thousands of workers at Block, the parent company of Cash App, Square and Afterpay, in a move signaling a major shift toward artificial intelligence.
In a note to staff, Dorsey explained that Block would be taking on risk by investing in 'intelligence tools,' as the company cut more than 4,000 employees on Thursday.
'We're not making this decision because we're in trouble,' wrote the Twitter creator. 'Our business is strong. Gross profit continues to grow, we continue to serve more and more customers, and profitability is improving.'
However, alongside that success came new ways for the company to integrate its intelligence tools with smaller teams, leading to massive layoffs.
Throughout the note, Dorsey stressed that letting go of thousands of staffers at once was meant to keep morale high rather than carrying out demoralizing job cuts over a number of months.
'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,' he wrote.
He added that a smaller company also creates an opportunity to grow 'the right way, on our own terms, instead of constantly reacting to market pressures.'
Block's shares surged 24 percent following the announcement of the layoffs, according to CNN.
The Twitter creator said in a statement to the company that he was 'grateful' and 'sorry' for putting his employees through the layoffs
The CEO also said he would hold a live video session to thank employees for their time with the company.
'To those of you leaving… I'm grateful for you, and I'm sorry to put you through this,' the statement read. 'You built what this company is today.'
'That's a fact that I'll honor forever. This decision is not a reflection of what you contributed. You will be a great contributor to any organization going forward.'
The company said workers affected by the layoffs will receive 20 weeks of pay, in addition to an extra week's salary for every year they worked at the company.
Those let go will also keep their corporate devices, receive stock benefits through the end of May, six months of health coverage, and a $5,000 payment to help them through the transition.
Employees outside the US will be offered similar packages, though details will vary by country, the statement said.
All employees were told they would be informed the same day whether they were being laid off, entering consultation, or keeping their jobs.
The CEO noted that the terminations come while the company is growing and successful. The statement added that working with a smaller staff gives them opportunity to grow
Alongside that success came new ways for the company to integrate its intelligence tools with smaller teams, leading to massive layoffs
Dorsey ended his note to remaining staff by saying: 'I made this decision, and I'll own it.'
'What I'm asking of you is to build with me. We're going to build this company with intelligence at the core of everything we do. How we work, how we create, and how we serve our customers.'
The CEO said customers will 'feel this shift,' adding that the company plans to help them build their own features using its tools and services.
The Daily Mail has reached out to Block for comment.
The move comes shortly after Amazon laid off tens of thousands of workers less than a month ago.
Amazon told staff it plans to cut around 16,000 corporate jobs worldwide towards the end of January as it pushes ahead with efforts to streamline the business and reduce bureaucracy.
The move marks the second major round of layoffs at the Seattle-based company since October, following the loss of roughly 14,000 roles.
The latest cuts are understood to fall mainly in the US, though some UK jobs were also affected.
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