Block slashes workforce by half, cites AI
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- Block will cut its workforce by roughly half, dropping headcount from about 10,000 to under 6,000.
- Jack Dorsey said AI "fundamentally changes what it means to build and run a company" and predicts most firms will make similar structural changes within a year.
- Block expects up to $500 million in restructuring costs as it pivots to an AI‑driven strategy.
- Block’s shares jumped more than 20 % in extended trading after the layoff announcement.
- Block has undertaken several rounds of layoffs since 2024, but this is the first instance it cited AI as the primary cause.
- Meta, Microsoft, Google and Amazon have also cut workers while increasing AI investments, illustrating a broader industry trend.
Why it matters: Block’s 50% headcount cut slashes payroll, freeing cash for AI investments while displacing thousands of workers; the market rewarded the move with a 20%+ share jump, underscoring investors’ appetite for AI‑driven cost cuts over employment stability.
