block announced Thursday that it would lay off more than 4,000 people, about half of its workforce. Shares soared more than 24% in extended trading.
“Today, we shared a difficult decision with our team,” Block co-founder and CEO Jack Dorsey said in a letter to shareholders. “We have almost halved the block from more than 10,000 people to just under 6,000, meaning more than 4,000 people have been asked to leave or are in consultation.”
Block Chief Financial Officer Amrita Ahuja said the layoffs position the company for “the next phase of long-term growth.”
“We are choosing to change the way we operate now as our business accelerates and we see an opportunity to leverage AI to automate more tasks and move faster with smaller, better teams,” Ahuja wrote.
Dorsey said he expects other companies to similarly rethink their workforces because of the potential for efficiency gains from “intelligence tools.”
“Within the next year, the vast majority of companies will come to the same conclusion and make similar structural changes,” Dorsey said. “We would rather get there honestly and on our own terms than being passively forced.”
Same for other companies pinterest, cloud strike and Chegg Companies have recently announced layoffs, blaming the reorganization of their workforce through AI as the direct cause of the layoffs.
Dorsey said in the X post that the company has a choice between laying off staff over the coming months or years “as this change progresses” or “acting now.”
“I chose the latter,” Dorsey wrote. “Repeated cuts are destroying morale, focus and customer and shareholder confidence in our leadership.”
According to its annual report, the company had 10,205 employees worldwide as of December 31, 2025.
Block announced layoffs in conjunction with its fourth quarter results.
The payments company reported adjusted earnings of 65 cents a share and revenue of $6.25 billion, while analysts had expected 65 cents a share and revenue of $6.24 billion, according to LSEG.
Gross profit increased 24% year over year to $2.87 billion.
The company said it expects full-year adjusted earnings per share of $3.66. Analysts had expected $3.22 per share, according to LSEG.
As a result of the workforce reductions, the company expects to incur approximately $450 million to $500 million in charges, primarily consisting of non-cash costs related to severance, employee benefits and stock vesting, according to securities filings.
Block expects most of the restructuring costs to be incurred in the first quarter.
Block stock price chart from the beginning of the year to the present.
