Block Layoff: Jack Dorsey, who co-founded Block, Inc after selling his stake in Twitter to Elon Musk, informed that they are laying off nearly half of the workforce as the company embraces Artificial Intelligence (AI) tools.
Dorsey said that the firm is laying off more than 4,000 employees of their total workforce of 10,000 people.
"Today we're making one of the hardest decisions in the history of our company: we're reducing our organisation by nearly half, from over 10,000 people to just under 6,000. that means over 4,000 of you are being asked to leave or entering into consultation," Dorsey said in a post on X.
The Twitter co-founder further said that the decision was made not because 'Block' has some financial decline, but rather because of intelligence tools.
"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. But something has changed. 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. and that's accelerating rapidly," Dorsey added.
The layoff would affect employees of Square, CashApp and Tidal, owned by Block.
Tech Layoff 2026
According to the BBC, the firm did several rounds of layoffs in 2024. However, this is the first time the company has cited that the same is done due to AI. The disruption that AI tools are bringing to the tech domain could affect the IT job market severely in the coming years.
Earlier, in January this year, Amazon laid off 16,000 employees, which reduced 1,4000 roles a few months ago.