Jack Dorsey Axes 4,000 Jobs Despite Boom

Jack Dorsey’s Block Inc. just axed over 4,000 jobs despite booming profits, revealing AI’s ruthless potential to gut American workforces in a single stroke.

Story Snapshot

Block announces 40% workforce cut from 10,000+ to under 6,000 employees, tied directly to AI efficiency gains.
Company reports 24% gross profit growth to $2.87 billion in Q4 2025, yet prioritizes “AI-native” restructuring over jobs.
CEO Dorsey cites 40% higher engineer output from AI tools, signaling broader tech sector job losses ahead.
Stock surges 23% after-hours as investors cheer leaner operations; layoffs complete by June 2026.
Employees get brief access to systems for goodbyes, highlighting cold efficiency of AI-driven decisions.

Block’s Aggressive Restructuring Announcement

On February 26, 2026, Block Inc. disclosed plans to lay off more than 4,000 employees during its Q4 2025 earnings report. The fintech giant, encompassing Square, Cash App, and Tidal, will shrink its workforce from about 10,000-11,000 to fewer than 6,000. CEO Jack Dorsey positioned the move as essential for becoming a “smaller, faster, intelligence-native company.” This follows strong financials, including 24% gross profit growth to $2.87 billion. Employees retained email and Slack access until evening for farewells, with a live video address from Dorsey planned.

AI Tools Drive Unprecedented Efficiency Gains

AI advancements underpin the layoffs, with tools boosting engineer productivity by 40%. Block’s internal system Goose accelerated tasks, but December 2025 saw external AI models surpass it dramatically. CFO Amrita Ahuja noted engineering timelines dropped from weeks to fractions. Dorsey emphasized that intelligence tools redefine company operations, enabling smaller teams to achieve more. The firm plans to hire senior AI engineers amid cuts, underscoring a shift to specialized talent. This rejects gradual reductions, which Dorsey called destructive to morale.

Dorsey’s Leadership and Company Background

Jack Dorsey, Block co-founder and former Twitter head, authored the shareholder letter and posted on X about the AI-native pivot. Block, founded in 2009 as Square, rebranded in 2021 amid expansions into Cash App and Bitcoin services. Prior 2025 layoffs cut 931 jobs for strategic reasons, not AI. Now, profitability—FY2025 gross profits over $10 billion—funds this overhaul. Cash App revenue jumped 33% year-over-year, offsetting Bitcoin ecosystem declines amid a crypto bear market. Dorsey prioritizes speed and high performance standards.

Stakeholders react variably: investors drive a 23% after-hours stock surge on projected FY2026 gross profits of $12.2 billion and $3.66 EPS. Employees face anxiety, but AI empowers survivors with superior tools.

Broader Industry Signals and Worker Impacts

Block’s cuts preview AI disruption across tech, mirroring Amazon’s 16,000 January 2026 layoffs. Dorsey claims most companies lag, predicting all will adopt lean AI models. Short-term morale suffers, but long-term efficiency promises higher output. Fintech sees specialist hiring amid broad reductions. Socially, it heightens job displacement fears, especially in coding and text tasks. Under President Trump’s pro-business climate, such moves bolster shareholder value over endless workforce expansion—a win for fiscal discipline against past overspending eras.

Jack Dorsey just gave us our first glimpse at how doomsday layoffs could work in the AI era — and it's bleak https://t.co/iBNCIpB5ni

— Jazz Drummer (@jazzdrummer420) February 27, 2026

Conservatives applaud efficiency rejecting bloated structures, echoing demands for limited government and personal responsibility. Yet working families must prepare as AI redefines jobs, favoring skilled patriots ready for tomorrow’s economy.