Block, Inc., the San Francisco-based technology company formerly known as Square—which owns Cash App—and founded by former Twitter CEO Jack Dorsey and Jim McKelvey, announced on Thursday, February 26, 2026, that it is laying off nearly half of its workforce.
The announcement came via a message from Dorsey to employees, stating that over 4,000 of the company’s approximately 10,000 employees will be affected as part of a reduction to just under 6,000 staff. “We’re not making this decision because we’re in trouble. Our business is strong… but something has changed,” Dorsey wrote. He added that the company’s new approach—using artificial intelligence tools with smaller and flatter teams—is enabling a fundamental shift in how companies operate.
Dorsey emphasized that the move was intended to avoid prolonged cuts and build from a stronger foundation. “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,” he said. The company’s stock surged more than 20 percent in after-market trading following the announcement.
The layoffs underscore escalating concerns about AI-driven automation across the tech industry. Leaked documents from Amazon indicate plans to automate 75 percent of its operations by 2027, potentially saving $12.6 billion and avoiding over 600,000 U.S. jobs by 2033. Additionally, a leader of Anthropic’s safety team for its Claude chatbot recently resigned after expressing concerns about AI risks.
