Block Lays Off Nearly Half Its Workforce: Jack Dorsey Says AI Will Reshape How Companies Operate

In a bold move that signals how fast artificial intelligence is reshaping the business world, Block, Inc. — led by Jack Dorsey — has laid off nearly half its global workforce. The company, known for products like Square, Cash App, and Afterpay, has cut around 4,000 jobs, reducing its headcount from more than 10,000 to under 6,000.

According to Dorsey, the decision wasn’t about financial losses — it was about AI efficiency and the future of work.

1. Why Block Cut Nearly Half Its Staff

Block’s leadership explained that the layoffs stem from a strategic transformation powered by artificial intelligence.
The company’s new “AI-first” model allows smaller teams to perform the same tasks with greater accuracy and productivity.

Dorsey wrote in an internal memo that AI tools are now capable of automating repetitive, manual, and support-heavy tasks, freeing up human creativity for higher-value roles. He emphasized that this change “fundamentally alters what it meansto build and run a company.”

2. AI Is Driving a Major Shift Across Industries

Jack Dorsey predicted that most companies will eventually follow the same path.
As AI systems continue to improve in areas like coding, analytics, customer support, and marketing, many corporations will find that large staff sizes are no longer necessary.

This announcement from Block could mark a turning point — one where AI becomes the backbone of business operations, not just an assistive tool.

Experts say the move echoes what’s happening across the tech industry, where automation and machine learning are streamlining workflows and cutting costs.

3. Market Reaction and Investor Response

Investors have responded positively to Block’s AI-driven restructuring.
Following the announcement, Block’s stock price jumped more than 20%, as the market viewed the layoffs as a cost-cutting step and an innovation-focused strategy.

Analysts suggest that investors see Dorsey’s AI-first approach as a long-term growth signal, potentially improving profit margins and scalability.

4. Support for Laid-Off Employees

Despite the large number of layoffs, Block has promised generous severance packages for affected employees.
These include:

• Multiple weeks of severance pay

• Continued equity vesting

• Several months of healthcare coverage

• Transition support and career counseling

The company said these measures are intended to help employees adapt to the new market reality and find opportunities in other fast-growing AI-driven sectors.

5. What This Means for the Future of Work

Dorsey’s warning — that “most companies will do the same” — highlights a dramatic shift in how businesses might operate in the near future.
AI will likely reduce the need for traditional middle-management roles, administrative staff, and manual processes.

However, it will also create demand for new skills: AI engineering, data governance, prompt design, and automation strategy.

Industry analysts believe that companies adopting AI now will lead the next decade of innovation, while others risk falling behind.

Block’s decision to cut nearly half its workforce isn’t just a corporate restructuring — it’s a sign of where the global economy is heading.
With AI becoming more capable, companies are rethinking what efficiency means.

Jack Dorsey’s message is clear:
The future belongs to smaller, smarter, and AI-driven organizations.
And if his prediction holds true, most businesses will follow sooner than expected.