Block to Cut Over 4,000 Jobs as Dorsey Cites AI Efficiency

Block Inc., the San Francisco-based parent of Square and Cash App, will lay off more than 4,000 of its 10,000‑plus employees as part of a restructuring that CEO Jack Dorsey explicitly links to the company’s use of artificial intelligence tools. In a Feb. 27 letter to shareholders, Dorsey said 'intelligence tools have changed what it means to build and run a company' and argued that 'a significantly smaller team' using AI can 'do more and do it better.' The cuts, whose geographic breakdown has not been detailed, come as Block reported a 24% year‑over‑year jump in fourth‑quarter gross profit and as its shares surged more than 20% in after‑hours and premarket trading on the news, from $54.53 to nearly $69. Analysts note that while other large employers have recently announced mass layoffs and downplayed any AI link, Block is one of the first major U.S. firms where a CEO has publicly framed white‑collar job cuts as directly driven by AI‑enabled efficiency. The move will feed a growing debate in the U.S. over how quickly AI may displace higher‑skilled workers, even in companies posting strong profits, and over investors’ apparent willingness to reward aggressive headcount reductions tied to automation.