Jack Dorsey Cuts Block’s Workforce in Half: Is Your Company Next?
On February 26, 2026, Jack Dorsey announced a significant restructuring at Block, the payments company he founded, which includes Square, Cash App, and Tidal. The company plans to lay off over 4,000 employees, effectively reducing its workforce by nearly half, from over 10,000 to just under 6,000. The announcement triggered a 24% increase in Block’s stock during after-hours trading, signaling a positive response from investors.
Dorsey’s decision echoes similar moves made by other tech companies in recent years. In November 2022, Elon Musk cut around 50% of Twitter’s workforce after taking the company private, a bold action that shifted expectations about staffing in the tech industry. Dorsey, who previously held a 2.4% stake in Twitter and supported Musk’s acquisition, has had a complicated relationship with Musk, marked by shared admiration for Bitcoin and public disagreements.
In framing the layoffs, Dorsey described them as a strategic move—one driven by the need to adapt to advancements in artificial intelligence. Block’s CFO, Amrita Ahuja, suggested that the changes will allow the company to operate with smaller, more efficient teams that leverage AI to automate work. Despite the official narrative, some analysts remain skeptical about whether the layoffs are genuinely a strategic shift or primarily a financial decision.
Dorsey emphasized that his goal was to avoid repeated cuts that could damage employee morale and trust with customers and shareholders. He expressed his belief that many companies will inevitably face similar cuts in the coming year.
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