Block to Slash 4,000 Jobs as Jack Dorsey Pushes AI-Led Overhaul

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Block, the payments company led by co-founder Jack Dorsey, is set to eliminate around 4,000 positions as part of a sweeping restructuring driven by artificial intelligence. The move represents roughly 40% of the company’s workforce and signals a dramatic shift in how the firm plans to operate in an increasingly AI-focused environment.

In a letter to employees shared on X, Dorsey said the rapid advancement of AI tools inside the company has fundamentally reshaped how teams build and manage products. He argued that smaller, flatter teams empowered by internally developed intelligence tools are already changing the nature of work at Block, accelerating the need for structural change.

According to Dorsey, the company faced a choice between implementing gradual reductions over an extended period or taking decisive action immediately.

He opted for the latter, saying that drawn-out rounds of layoffs would weigh on morale, distract from execution and erode trust among customers and shareholders. Acting swiftly, he suggested, would allow the company to reset and move forward with greater clarity.