“Most companies will come to the same thing“: Jack Dorsey announced a reduction of over 40% of the Block staff amid the development of AI — shares added 24% 40% is more than 4,000 people.

Dorsey. Photo source: The Verge Dorsey. Photo source: The Verge Block co-founder Jack Dorsey called the decision to cut almost half of the staff “the most difficult in the company’s history." They promised to send out notifications about who will leave, who will be interviewed, and who will stay the same day. In the United States, those who are shortened will receive a salary for an additional 20 weeks and a weekly payment for each year they work; health insurance for six months; shares with vesting counted by the end of May 2026; a bonus of $5,000; corporate devices issued upon hiring. The conditions will be similar for employees from other countries. Dorsey deliberately decided to cut 40% at once, without stretching the process for months or years, because waves of cuts undermine morale, concentration, and the faith of customers and shareholders in the managerial skills of top management. He took full responsibility for the decision. We are not cutting back because the business has problems. It is stable, gross profit and audience continue to grow, profitability is increasing. But the situation has changed. The “smart" tools that we develop and use, in the hands of smaller teams and with a flatter organizational structure, fundamentally change the very understanding of what it means to build and manage a company. And the process is rapidly accelerating. <...> It’s risky to cut so many people, but it’s also risky to do nothing. Jack Dorsey On a call with investors, Dorsey said that in December 2025 he realized how “powerful and smart" AI models had become. And Chief Financial Officer Amrita Ahuja added that the company believes in the opportunity to develop faster with a small but high-quality team that automates work using neural networks. And it is better to make such decisions from a “position of strength." I don’t think we came to the realization early. Rather, the others are late. I expect that most companies will come to the same conclusion and make the same structural changes over the next year. Jack Dorsey The details of exactly how AI allowed so many positions to be abolished were not shared in the Block. Some analysts do not rule out that the company is hiding behind such theses, just to cut costs. Dorsey announced that he would hold a video call to thank the abbreviated for their contributions: “It may be awkward, but I’d rather feel awkward and remain human than pass off as an insensitive advocate of efficiency." The comments joke about Dorsey’s monologue: “Team, we made $24 billion in profit last year! I would like to please you in honor of this." Source: X The comments joke about Dorsey’s monologue: “Team, we made $24 billion in profit last year! I would like to please you in honor of this." Source: X The American Block was co-founded in 2009 by Jim McKelvey and Twitter co-founder Dorsey. She manages the Square payment system, the Cash App transfer service, the Bitkey bitcoin wallet, the Proto mining service, and the fintech company Afterpay. Back in 2020, it employed 5,477 people. By the end of 2023, there are already 13 thousand. Revenue for the fourth quarter of 2025 was $6.3 billion. Net profit — $116 million. Shares have fallen by 40% since the beginning of 2025. On February 26, 2026, amid the news, they closed at $54.53 per paper and then, by 10:37 Moscow time on February 27, they added 24.28%, rising to $67.8. Polina Laakso Career February 21 The company claims it’s cutting back for the hack, but employees think it’s about AI and money.: What’s Going On in Jack Dorsey’s Fintech Block In February 2026, Bloomberg sources reported that Block would cut 10% of its staff. As of November 2025, the number of employees did not exceed 11 thousand. The company claims it’s cutting back for the hack, but employees think it’s about AI and money.: What’s Going On in Jack Dorsey’s Fintech Block