Block, a financial technology giant led by its founder Jack Dorsey (which owns Square and Cash App), has recently announced an aggressive restructuring plan: the company will cut "nearly half" of its staff, involving more than 4,000 positions. After the layoffs, the company's size will shrink from over 10,000 employees to fewer than 6,000.

Jack Dorsey stated on the social platform X that this large-scale layoff was not due to the company facing operational difficulties. On the contrary, Block's financial indicators are strong, with continuous growth in gross profit and improving profitability. He attributes this shift to an "AI-driven efficiency revolution." Dorsey believes that by combining AI tools with flatter, smaller teams, the company can operate in a completely new way, fundamentally changing how companies are built and managed.

In his letter to shareholders for the fourth quarter of 2025, Dorsey emphasized that he hopes Block becomes a smaller, faster-moving company centered around "native intelligence." He chose to make a large-scale layoff at once, rather than a gradual reduction, to quickly start from this new foundation, rather than losing momentum during a prolonged period of downsizing.

This round of layoffs is seen as one of the most extreme corporate experiments under the Silicon Valley AI wave. Dorsey is proving through action that he is willing to sacrifice employee numbers in exchange for a streamlined organization fully empowered by AI.

Summary:

  • 📉 Half the Size: Block will lay off more than 4,000 people, with a layoff rate close to 50%, reducing the total number of employees to below 6,000.

  • 🤖 AI-Driven Transformation: Jack Dorsey believes the use of AI tools allows small teams to accomplish work that used to require large organizations. The layoff is a necessary step in the transformation toward a "native intelligent" company.

  • 💪 Layoffs Not Due to Losses: The company is currently performing strongly with growing profits. This move is an active choice based on future changes in work models, not a reactive measure due to financial distress.