Twitter co-founder Jack Dorsey has announced that his financial technology company, Block, will lay off nearly 4,000 employees, reducing its headcount from 10,000 to under 6,000, as artificial intelligence (AI) reshapes operations and company structures.
In a letter to shareholders, Dorsey stated that AI “fundamentally changes what it means to build and run a company,” and predicted that most companies will soon follow suit, implementing similar workforce adjustments.
The layoffs mark the first time Block has explicitly linked redundancies to AI, though the firm has previously conducted several rounds of workforce reductions since 2024. The move reflects a wider trend in the tech sector, with major companies such as Amazon, Meta, Microsoft, and Google also cutting jobs as AI tools automate functions previously performed by large teams of skilled employees.
Dorsey added that the AI-driven transformation is accelerating, warning that companies slow to adapt risk falling behind. Block expects to incur up to $500 million in restructuring costs as it pivots toward AI-focused strategies, a move that has already led to a more than 20% rise in its shares in after-hours trading.
The announcement underscores growing concerns and debate over AI’s impact on employment, even as analysts suggest some executive claims may overstate immediate job losses. Dorsey emphasized that the changes reflect the company’s strategic evolution, with strong product demand and profits reported at the end of last year, positioning Block to leverage AI efficiencies in its operations.
