Block Inc., an American technology company and a financial services provider for consumers and merchants, founded by Jack Dorsey in 2009, announced that it will cut more than 4,000 jobs, nearly half its workforce, as it integrates artificial intelligence (AI) into its operations. The company’s shares rose 25% in after-hours trading following the announcement, Reuters reported.
Block CEO Dorsey said new AI tools have changed how companies operate, making it possible for smaller teams to work more efficiently. He explained that Block decided on a single large round of layoffs rather than several smaller ones.
The restructuring reflects a broader shift as companies pursue AI-driven efficiencies, raising concerns among workers and economists about potential job losses even as productivity and profitability improve. Analysts at Evercore ISI described the move as a pivotal moment in the AI era. In contrast, analysts at Truist attributed the stock surge to expectations of improved profit margins in 2026 following the workforce reduction.
Block estimates that restructuring charges will total between $450 million and $500 million. The company expects gross profit of $2.80 billion for the first quarter, a 22% increase over last year. It also raised its 2026 gross profit growth forecast from 17% to 18%, while maintaining a cautious outlook.
