Jack Dorsey is cutting over 4,000 jobs at Block, reducing the workforce by nearly half, saying the move reflects an AI-driven structural shift rather than financial trouble.
In one of the most sweeping tech layoffs of the year, Jack Dorsey said he is cutting more than 4,000 jobs at Block, reducing the payments company’s workforce by nearly half.
“Today we’re making one of the hardest decisions in the history of our company,” CEO Dorsey wrote in a lengthy post on X. “We’re reducing our organization by nearly half, from over 10,000 people to just under 6,000.”
That means more than 4,000 employees will be leaving or entering consultation.
Dorsey, who co-founded both Block and Twitter, said he had two choices. “I had two options: cut gradually over months or years as this shift plays out, or be honest about where we are and act on it now. I chose the latter.”
‘WE’RE NOT IN TROUBLE’
Dorsey insisted the layoffs are not a response to financial weakness.
“We’re not making this decision because we’re in trouble. Our business is strong. Gross profit continues to grow and profitability is improving,” he wrote.
Instead, he pointed to a structural shift driven by intelligence tools and flatter teams.
“We’re already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company,” Dorsey said.
He argued that repeated rounds of smaller layoffs would damage morale and trust. “I’d rather take a hard, clear action now and build from a position we believe in than manage a slow reduction of people toward the same outcome.”
SEVERANCE AND SUPPORT
Employees affected will receive 20 weeks of salary plus an additional week per year of tenure, equity vested through the end of May, six months of health coverage, their corporate devices and $5,000 to support their transition. International packages will vary by country.
Dorsey said everyone would be notified the same day whether they were leaving, entering consultation or staying.
“We’re not going to just disappear people from Slack and email and pretend they were never here,” he wrote. Communication channels will remain open through Thursday evening Pacific time so colleagues can say goodbye.
“I’d rather it feel awkward and human than efficient and cold,” he added, announcing he would host a live video session to thank employees.
A BET ON ‘INTELLIGENCE AT THE CORE’
To those staying, Dorsey was direct. “I made this decision, and I’ll own it. What I’m asking of you is to build with me.”
He said the company will now be rebuilt “with intelligence at the core of everything we do — how we work, how we create, how we serve our customers.”
“Our customers will feel this shift too,” he wrote, signalling a push toward tools that allow businesses to build features directly using Block’s capabilities.
