AI Shock: Block Cuts 4,000 Jobs in Major Shift
Block is slashing 4,000 jobs as it pivots to artificial intelligence, marking one of the biggest AI-driven tech layoffs in the industry shift.
Twitter co-founder Jack Dorsey says his technology firm, Block, is laying off nearly half of its employees because artificial intelligence (AI) "completely changes the way companies are built and run."
In a letter to shareholders, he said, "I believe most companies will reach this conclusion and make similar structural changes within the next year."
The layoffs mean the company—which owns Square, CashApp, and Tidal—will see its workforce drop from 10,000 to fewer than 6,000.
Block has seen several layoffs since 2024, but this is the first time it has cited AI as the reason for the layoffs, and it's the latest in a series of major job cuts in the tech industry.
In late January, Amazon laid off 16,000 employees, while just a few months earlier, it had laid off 14,000.
In a subsequent call discussing financial results, Amazon Chief Financial Officer Brian Olsavsky said the company is considering increasing spending on AI while also reducing spending elsewhere.
Meta, Microsoft, and Google have also laid off employees as their focus shifts to major investments in AI.
Meta co-founder and Chief Executive Mark Zuckerberg said he expects "2026 will be the year AI completely changes the way we work."
Zuckerberg said, "We're starting to see projects that previously required large teams now be completed by a single, highly talented individual."
Most tech companies today are using AI tools that automatically write the computer code needed to run software or websites, such as Anthropic's Cloud Code or OpenAI's Codex.
This automation of tasks that have been performed by highly trained people for decades has raised fears that AI will disrupt the job market.
But some analysts have said that the immediate threat to jobs has been exaggerated by executives who want to appear ahead of their time.
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According to Dorsey, more changes related to AI capabilities are coming.
"I don't think we're understanding this quickly," he said on Thursday. "I think most companies are understanding this late."
Block's financial report showed strong demand for its products and services, leading to increased profits at the end of last year.
The firm also said that it would incur up to $500 million (£370 million) in restructuring costs while implementing the new strategy.
Its shares rose more than 20% in extended trading following the announcement.
Dorsey is the co-founder and former chief executive of Twitter, the online micro-messaging platform that was later acquired by Elon Musk and renamed X.
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