Jack Dorsey Cuts Half of Block’s Staff, Warns You’re Next

On Thursday, Block CEO Jack Dorsey announced a massive restructuring that will eliminate over 4,000 jobs—nearly half of the fintech firm’s global workforce—in a proactive move to integrate AI automation, sending the company’s stock up by more than 24% in after-hours trading.

The drastic downsize slashes the workforce of Block—the parent company of Square, Cash App, and Tidal—from more than 10,000 employees down to just under 6,000. The aggressive move mirrors previous high-profile tech layoffs, most notably Elon Musk’s abrupt decision to cut 50% of Twitter’s staff immediately after acquiring the platform in November 2022.

Following the Elon Musk Playbook

Dorsey has long expressed admiration for Musk’s management style, and this latest move suggests he is actively implementing similar strategies. During Musk’s turbulent acquisition of Twitter, Dorsey chose to roll his 2.4% ownership stake into the private entity rather than taking a cash payout, positioning himself as one of the largest external investors in the platform now known as X.

A Complicated Tech Alliance

The relationship between Dorsey and Musk has been highly volatile. While Dorsey initially championed Musk’s takeover, he later publicly stated that Musk “should have walked away.” Dorsey also helped launch Bluesky, a decentralized rival to Twitter, only to later exit its board and praise X as “freedom technology.” Despite these shifting dynamics, both executives remain united in their outspoken advocacy for Bitcoin, with both Block and Tesla holding the cryptocurrency on their respective balance sheets.

Why Block is Slashing Its Headcount

Rather than framing the layoffs as a response to a financial crisis, Dorsey described the decision as a strategic, pre-emptive measure. He argued that lingering, multi-round layoffs destroy internal morale, dilute focus, and erode trust among shareholders and customers. Dorsey predicted that most major corporations will face a similar reality within the next year, stating he preferred to reach this lean operational state on his own terms rather than being forced into reactive cuts later.

The AI-Driven Restructuring

According to Block Chief Financial Officer Amrita Ahuja, the staff reductions are designed to streamline operations. The executive team expects the smaller, highly targeted workforce to move faster by leveraging artificial intelligence to automate routine tasks.

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Severance Packages and Industry Trends

For departing U.S. employees, Dorsey outlined a comprehensive severance package. Affected workers will receive 20 weeks of base salary plus an additional week for every year of tenure. Additionally, Block is offering equity vesting through the end of May, six months of healthcare coverage, retention of corporate devices, and a $5,000 transition stipend. Employees outside the United States will receive comparable separation packages tailored to local labor laws.

The AI Layoff Wave: Efficiency or Cost-Cutting?

Block is far from the only tech giant aggressively reducing headcount under the banner of technological evolution. Companies like Salesforce and Amazon have recently executed enormous workforce cuts, claiming that artificial intelligence allows them to operate more efficiently with fewer personnel. However, market analysts remain skeptical. A recent report from Forrester Research cast some doubt on whether these decisions are truly driven by AI productivity gains, suggesting instead that many companies may simply be using AI as a convenient narrative to justify financially motivated cost-cutting measures.