Block slashes 40% of workforce, cutting 4,000+ jobs in bold AI‑driven overhaul

Block said the cuts will bring its headcount to under 6,000, down from 10,000 employees — a 40% reduction, according to VentureBeat. The move follows a quarterly earnings release that showed $2.87 billion in gross profit, up 24% year‑over‑year — yet Dorsey framed the layoffs as a strategic shift, not a distress signal — citing “newfound AI efficiencies” in a note posted to X — the platform he founded (VentureBeat).

In a shareholder letter, Dorsey argued that “intelligence tools have changed what it means to build and run a company,” and that smaller, flatter teams equipped with Block’s own AI agents can outperform larger workforces (Morningstar). CFO Amrita Ahuja added that productivity gains have been seen not only among engineers but across the broader organization, reinforcing the case for a leaner structure (Morningstar).

Block’s AI push includes an in‑house agent codenamed “Goose,” designed to interact with large language models and automate routine tasks (Engadget). Dorsey said the capabilities of these tools are “compounding faster every week,” and he expects other firms to follow Block’s example within a year (Morningstar).

The restructuring will affect more than 4,000 workers, with the company pledging severance and outplacement support, though the exact terms were not disclosed (VentureBeat). Analysts note that the layoffs come as fintech rivals double down on AI, but Block’s profit surge suggests the company can absorb the short‑term disruption while betting on long‑term automation (VentureBeat).