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Jack Dorsey’s Block Cuts Nearly Half Its Workforce in AI-Driven Overhaul
2 min read Block, led by co-founder and CEO Jack Dorsey, announced plans to lay off more than 4,000 employees — nearly half of its global workforce — as part of a sweeping restructuring centered on artificial intelligence integration and a leaner operating model. February 27, 2026 16:30
Block, led by co-founder Jack Dorsey, is undergoing a dramatic restructuring that will eliminate nearly half of its workforce as part of a company-wide AI transformation.
The move is centered on streamlining operations, embedding artificial intelligence across internal systems, and shifting to a leaner organizational structure. Management framed the cuts as a strategic reset rather than a response to financial distress.
Despite the layoffs, investor reaction was positive — with shares surging following the announcement, signaling that markets see the restructuring as a cost-efficiency play powered by AI.
Block said the overhaul reflects how rapidly AI tools are changing productivity, development cycles, and operational workflows. The company aims to become smaller, faster, and more automation-driven while continuing to scale its core financial products.
Why It Matters
This is another major signal that:
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AI is reshaping corporate structures, not just products
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Large tech firms are redesigning headcount around automation
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Investors are rewarding aggressive AI-driven efficiency moves
It also highlights a broader trend: companies are using AI not only to build new features — but to fundamentally reduce operating costs.
If successful, Block’s pivot could become a blueprint for how legacy tech firms transition into AI-native organizations.
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