Block, Inc. will reduce its workforce by more than 4,000 employees, shrinking headcount from over 10,000 to just under 6,000, as the company restructures around artificial intelligence and a leaner operating model.
Co-founder and CEO Jack Dorsey detailed the decision in a note to employees that he also shared publicly.
“Today we're making one of the hardest decisions in the history of our company: we're reducing our organization by nearly half, from over 10,000 people to just under 6,000,” Dorsey wrote. “That means over 4,000 of you are being asked to leave or entering into consultation.”
we're making @blocks smaller today. here's my note to the company.
— jack (@jack) February 26, 2026
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today we're making one of the hardest decisions in the history of our company: we're reducing our organization by nearly half, from over 10,000 people to just under 6,000. that means over 4,000 of you are…
The company confirmed the move in a shareholder letter and an 8-K filing with the U.S. Securities and Exchange Commission. Block said the workforce reduction aligns its organizational structure with its operating model and strategic priorities.
Severance terms and restructuring costs
Affected employees will receive 20 weeks of salary plus one additional week per year of tenure, as Bloomberg reported. Dorsey stated that employees will also receive equity vested through the end of May, six months of health care coverage, their corporate devices, and $5,000 for transition support. International employees will receive comparable packages based on local requirements.
“I want you to know that before anything else,” Dorsey wrote in his note. “Everyone will be notified today, whether you're being asked to leave, entering consultation, or asked to stay.”
Block expects to record between $450 million and $500 million in restructuring charges. The company said most of the charges will appear in the first quarter of fiscal 2026. The costs include severance, notice-period pay, employee benefits and non-cash expenses related to share-based awards. Block cautioned that actual costs may differ from current estimates.
The restructuring should be largely complete by the end of the second quarter, according to the filing.
AI tools reshape internal structure
Dorsey framed the reduction as a response to rapid changes in how the company builds products and runs teams.
“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 that fundamentally changes what it means to build and run a company,” he wrote.
In the shareholder letter, Dorsey added:
“Intelligence tools have changed what it means to build and run a company. A significantly smaller team, using the tools we’re building, can do more and do it better.”
Block has invested in internal AI systems, including a proprietary tool known as Goose, to automate workflows across engineering, customer service and operations. Dorsey said he considered gradual cuts but rejected that approach.
“I had two options: cut gradually over months or years as this shift plays out, or be honest about where we are and act on it now. I chose the latter.” He also acknowledged risk. “A decision at this scale carries risk. but so does standing still.”
Financial results accompany cuts
The announcement coincided with Block’s fourth-quarter and full-year 2025 earnings release. For the full year, Block reported a gross profit of $10.36 billion, up 17% year over year. The company said its businesses generated $10.4 billion in gross profit across commerce enablement, financial services, and its Bitcoin ecosystem.
Block expects first-quarter operating income of $600 million, above a $574 million consensus estimate, and gross profit of $2.8 billion versus $2.72 billion expected. The company also reported a beat on Cash App monthly active users.
Cash App had 59 million monthly transacting users in the United States at year-end, with $316 billion in customer inflows during 2025, according to its annual filing.
Shares of Block, which trade on the New York Stock Exchange under the ticker XYZ, rose sharply in after-hours trading following the announcement. The stock closed at $54.53 and then gained more than 20% after the results.
Chief Financial Officer Amrita Ahuja stated in the shareholder letter that the company acts from a position of strength and aims to move faster for customers.
Was Citrini right? Is AI pushing people to the sidelines of the economy?
— HodlFM (@Hodl_fm) February 27, 2026
Jack Dorsey just laid off 40% of @Blocks (formerly Square), around 4,000 employees.
The company is profitable. $24B in 2025 revenue. Still growing.
His explanation? One word: AI. Fewer people. More… https://t.co/3L8p5Mgdiy pic.twitter.com/p3Qm9UaLWX
A sharper focus on core businesses
Block operates consumer and merchant payments through Cash App and Square, alongside Bitcoin-related services such as trading, self-custody, and merchant payments. In its third-quarter earnings report released in November, Block said it earned nearly $2 billion in Bitcoin revenue, which accounted for nearly a third of total revenue.
Dorsey addressed both departing and remaining employees directly.
“To those of you leaving…i’m grateful for you, and i’m sorry to put you through this. you built what this company is today,” he wrote. “To those staying…I made this decision, and I'll own it. what I'm asking of you is to build with me.”
He said the company will keep communication channels open through Thursday evening Pacific time so employees can say goodbye. He also announced a live video session to thank staff.
Block’s headcount had expanded rapidly in recent years. Public filings show that employee count exceeded 10,200 at the end of 2025, after peaking near 13,000 in 2023. The new structure marks one of the largest workforce reductions in the fintech sector this year.
Gunel Ismayilova
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