Jack Dorsey Cuts Over 4,000 Jobs as Block Shrinks Workforce Nearly in Half

Block Slashes More Than 4,000 Roles in Companywide Restructuring

Block founder Jack Dorsey announced on Thursday, 12 minutes after markets closed, that it will reduce its headcount from more than 10,000 employees to just under 6,000, eliminating over 4,000 roles as part of a broad companywide restructuring.

In a public letter posted to X, Dorsey wrote, “Today we’re making one of the hardest decisions in the history of our company: we’re reducing our organization by nearly half.” He stressed that all employees would be notified the same day whether they were being asked to leave, entering consultation or remaining with the company.

Dorsey outlined severance terms for affected workers, stating, “You’ll receive your salary for 20 weeks + 1 week per year of tenure, equity vested through the end of May, 6 months of health care, your corporate devices, and $5,000 to put toward whatever you need to help you in this transition.” He added that employees outside the United States would receive similar support consistent with local requirements.

The CEO stressed that the layoffs were not the result of financial distress. “We’re not making this decision because we’re in trouble. Our business is strong,” Dorsey wrote, citing continued gross profit growth, expanding customer reach, and improving profitability.

Instead, he described the move as a structural shift in how the company operates. “We’re already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company,” he wrote.

Dorsey’s message comes as artificial intelligence (AI) disruption is quite literally shaking up Wall Street multiple times a week. Dorsey said he chose to act decisively rather than implement gradual reductions.

“Repeated rounds of cuts are destructive to morale, to focus, and to the trust that customers and shareholders place in our ability to lead,” he wrote, adding that a smaller company would provide space to grow the business “the right way, on our own terms.”

The restructuring affects multiple teams across the organization, including payments businesses tied to Square and Cash App. Earlier reports from insiders this past month had suggested potential cuts of around 10%, but Thursday’s announcement represents a far deeper reduction. Inc.com states that amid the workforce drawdown, there’s the “promotion of AI tools” at the same time.

Acknowledging the scale of the decision, Dorsey wrote, “a decision at this scale carries risk. but so does standing still.” He added that the company conducted a full review of roles and built flexibility into the plan to adjust if necessary.

Closing his message, Dorsey addressed departing employees directly: “To those of you leaving…I’m grateful for you, and I’m sorry to put you through this.” To those remaining, he wrote: “We’re going to build this company with intelligence at the core of everything we do.”

FAQ ❓

• How many jobs is Block cutting?
  Block is eliminating more than 4,000 roles, reducing headcount from over 10,000 to under 6,000.
• Why is Block reducing its workforce?
  Dorsey said the move reflects a structural shift in how the company operates, not financial trouble.
• Is Block financially stable?
  According to Dorsey, the business remains strong with growing gross profit and improving profitability.
• Which parts of the company are affected?
  Multiple teams are impacted, including operations tied to Square and Cash App.