Jack Dorsey cuts workforce by 4,000 in a major AI-driven overhaul

Dorsey said AI-driven efficiency requires smaller teams, leading to one of the largest layoffs in Block history.

Jack Dorsey announced that Block will cut its workforce by nearly half, laying off more than 4,000 employees and bringing its total workforce from more than 10,000 to just under 6,000.

In a note shared publicly on

Mass layoffs at Block

He declared that affected employees will receive 20 weeks of salary plus one additional week per year of service, stock vested through the end of May, six months of healthcare coverage, their business devices and $5,000 to support their transition.

Employees outside the United States will receive similar support. Details may vary depending on local requirements. Dorsey said the decision was not driven by financial concerns, but added that the company’s business remains strong. Instead he added:

“But something has changed. We already see that the intelligence tools we create and use, combined with smaller and flatter teams, are enabling a new way of working that is fundamentally changing what it means to build and run a business, and that is accelerating rapidly.”

Dorsey said he considered reducing staff gradually over months or years, but opted to take immediate action. He said repeated layoffs would damage morale, focus and confidence among customers and shareholders. He acknowledged that some decisions may turn out to be wrong and that flexibility has been built in to take that into account as we continue to serve customers.

Dorsey admits there are overstaffing issues

The resignation announcement provoked mixed reactions on social media. Some users described the layoff terms as generous, while others focused on concerns about artificial intelligence replacing the human role. One user, Will Slaughter, tweeted that the cuts were less about AI and more about management decisions, while making a joke about Block more than tripling its workforce from 3,900 in December 2019 to 12,500 in December 2022.

He described the reduction as unwinding a “crazy COVID overreach” and attributed it to management incompetence rather than technological change. In response, Dorsey admitted to overhiring during the pandemic.

Other users criticized the optics of citing AI in a resignation letter written in lowercase. Some expressed concerns that job losses due to AI could become a broader trend, as the company’s share price rose 24% post-market.