Jack Dorsey's Block cuts thousands of roles as it embraces AI

February 27, 2026 - 03:28

Jack Dorsey's financial technology company, Block, is undertaking a significant workforce reduction, cutting thousands of roles as it aggressively pivots to integrate artificial intelligence across its operations. The move, announced internally, is framed as a necessary step to reshape the company for a new technological era.

In a memo to staff, Dorsey, the Twitter co-founder who leads Block, stated that the adoption of AI "fundamentally changes what it means to build and run a company." He emphasized that the restructuring is aimed at increasing efficiency and focus, allowing Block to operate with a leaner team while investing heavily in its AI-driven future. The company believes automation and advanced algorithms will streamline processes and enhance its core products, which include the Square payment system and the Cash App.

The layoffs are part of a broader plan to cap the company's total number of employees at a lower threshold for the foreseeable future. This decision follows a period of internal review where leadership concluded the organization had grown beyond its optimal size and pace. While difficult, Dorsey positioned the cuts as essential for creating a more disciplined and impactful company capable of long-term innovation. The restructuring underscores the powerful and disruptive influence of AI, not just on products, but on the very structure of major corporations.