Fintech company Block Inc., led by co‑founder and CEO Jack Dorsey, announced on February 26, 2026, that it will lay off about 4,000 employees, nearly 40 % of its workforce, as part of a major restructuring driven by the growing role of artificial intelligence (AI) in its operations.
Dorsey emphasized that the move was not due to financial weakness, but a response to technological change. AI tools now allow smaller, more agile teams to handle tasks that previously required larger staff numbers. Block’s headcount will drop from over 10,000 to under 6,000, reshaping how the company operates.
“This was one of the hardest decisions in our company’s history,” Dorsey wrote in a letter to employees and investors. He assured workers that Block’s business remains strong, with growing profits and a large customer base, but said the company must adapt to new technology to stay competitive.
The layoffs coincide with Block’s strong fourth-quarter earnings, which showed rising revenue and profitability. Following the announcement, the company’s shares jumped about 24 % in after-hours trading, reflecting investor approval of the AI-driven strategy.
Affected employees will receive severance packages, including several months’ pay, six months of continued healthcare, equity vesting into May, and a transition stipend.
Dorsey noted that other companies may face similar decisions as AI reshapes work across industries. While the move positions Block for long-term efficiency and growth, it also highlights broader concerns about the impact of AI on jobs in the tech sector and beyond.
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