American financial technology firm Block, Inc. will reduce its workforce by nearly half as artificial intelligence tools take over core operational functions, founder Jack Dorsey announced on Friday.
The company will shrink from more than 10,000 employees to just under 6,000, affecting over 4,000 staff members who will either exit the company or enter consultation processes.
“Today we’re making one of the hardest decisions in the history of our company: we’re reducing our organization by nearly half, from over 10,000 people to just under 6,000,” Dorsey said.
He clarified that the move is not due to financial distress. “We’re not making this decision because we’re in trouble. Our business is strong. Gross profit continues to grow, we continue to serve more and more customers, and profitability is improving,” he stated.
According to Dorsey, rapid advancements in intelligence tools have fundamentally changed how the company operates. He said the tools being developed and deployed internally, along with smaller and flatter teams, are enabling a faster and more efficient way of working.
we're making @blocks smaller today. here's my note to the company.
— jack (@jack) February 26, 2026
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today we're making one of the hardest decisions in the history of our company: we're reducing our organization by nearly half, from over 10,000 people to just under 6,000. that means over 4,000 of you are…
Dorsey said the company chose to act decisively now rather than implement gradual reductions over several months or years, which he described as damaging to morale and focus.
Employees affected in the United States will receive 20 weeks of salary plus one additional week per year of tenure, equity vested through the end of May, six months of healthcare coverage, their corporate devices, and $5,000 in transition support. Employees outside the US will receive comparable benefits in line with local regulations.
Founded in 2009 by Dorsey and Jim McKelvey, the company was previously known as Square before rebranding to Block in 2021 to reflect its expansion into a broader ecosystem that includes blockchain and music streaming services.
The restructuring comes amid rising global concerns in early 2026 about artificial intelligence reshaping employment, as corporations shift from pilot projects to large-scale organisational changes.
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