Block Layoffs: Jack Dorsey Cuts Nearly Half of Employees, Says AI Has Changed the Way the Company Operates Block (formerly Square) CEO Jack Dorsey announced layoffs of about 4,000 people, reducing the company from over 10,000 to less than 6,000 employees, with a layoff rate close to half. This is the largest layoff in Block's history. In a letter to all employees, Jack emphasized that the layoffs were not due to operational difficulties— the company's gross profit is still growing, the customer base continues to expand, and profitability is improving. The reason he provided is that AI tools combined with a more streamlined and flat team are fundamentally changing the way the company operates, and this change is accelerating. He stated that he chose the latter option of "one-time layoffs" over "gradual slow layoffs," believing that repeated layoffs would cause greater harm to morale and trust. Laid-off employees will receive at least 20 weeks of salary (plus one week for each year of service), equity vesting extended to the end of May, 6 months of health insurance, and a $5,000 transition subsidy. In his letter, Jack clarified Block's future direction: Rebuilding company operations with AI at the core and enabling customers to directly utilize Block's capabilities to build functionalities themselves. Block owns two major payment products, Cash App and Square, and this round of layoffs is one of the largest cases in the tech industry's "AI-driven organizational slimming" trend, making it worth watching whether this radical transformation can fulfill Jack's promises.