Block says it will cut over 4,000 jobs as it leans on AI tools

In short: Block says it will cut more than 4,000 jobs by the end of Q2 fiscal 2026, and CEO Jack Dorsey says AI tools are a key reason.

What happened

Block Inc., the company behind Square and Cash App, announced in late February 2026 that it plans to cut more than 4,000 jobs. That is roughly 40 to 50 percent of its workforce, which has been reported at about 10,000 to 13,000 employees. Block reported 10,205 full-time employees as of December.

Dorsey said the cuts are part of a plan to rebuild the company around “intelligence.” In simple terms, he is saying the company is betting that AI tools (software that can do some tasks people usually do, like drafting text or summarizing information) will let smaller teams get more done.

In a post on X and a note to employees, Dorsey said the company is already seeing these tools, plus “smaller and flatter teams,” change how work gets done. He also said Block is not making the cuts because it is in financial trouble. Dorsey pointed to 2025 gross profit of more than $10 billion, up 17% from the year before, and Block’s stock rose more than 23% in after-hours trading after the announcement.

This comes after Block laid off 931 employees in 2025, about 8% of staff, for performance and strategy reasons. At the time, Block said those cuts were not tied to AI.

Why it matters

This is another sign that large companies may use AI tools alongside reorganizations to run with fewer people. For workers, it raises a practical question. Which jobs will still need a human, and which tasks will be handled by software, like having an extra assistant that never sleeps.

Source: Wired