Block On Thursday it said it was laying off more than 4,000 employees, or about half of its workforce. The stock soared 24% in extended trading.
“Today we shared a difficult decision with our team,” Block’s co-founder and CEO Jack Dorsey wrote in a letter to shareholders. “We’re almost halving the block, from over 10,000 people to just under 6,000, which means over 4,000 people are being asked to leave or enter consultation.”
Block CFO Amrita Ahuja said the job cuts position the company for “our next phase of long-term growth.”
“We are choosing to change how we operate at a time when our business is accelerating and we see an opportunity to move faster with smaller, more talented teams using AI to automate more work,” Ahuja wrote.
The block rose nearly 18% in premarket trading on Friday.
Dorsey said other companies should similarly scrutinize their workforces as they see greater efficiency gains from “intelligence tools.”
“I believe that within the next year, most companies will reach the same conclusion and make similar structural changes,” Dorsey said. “I’d rather go there honestly and on our own terms than be reactively forced.”
Other companies are like that Pinterest, Crowd strike And Chegg have recently announced job cuts and AI is directly responsible for the layoffs to reshape their workforce.
At X Post, Dorsey said he was faced with the choice of laying off staff in several months or years “while this change works,” or “to work now.”
“I chose the latter,” wrote Dorsey. “Repeated rounds of cuts are devastating to morale, focus and the trust that customers and shareholders place in our leadership capabilities.”
The company has 10,205 employees worldwide as of December 31, 2025, according to its annual filing.
Block announced the layoffs with its fourth-quarter earnings results.
The payments company reported adjusted earnings of 65 cents per share on revenue of $6.25 billion, while analysts had expected 65 cents per share and $6.24 billion, according to LSEG.
Gross profit increased 24% from the prior year to $2.87 billion.
For the full year, the company said it sees adjusted earnings per share of $3.66. According to LSEG, analysts expected $3.22 per share.
As a result of the workforce reductions, the company expects a charge of approximately $450 million to $500 million, primarily consisting of noncash costs related to severance payments, employee benefits and share vesting, according to the securities filing.
Block expects more restructuring charges to accrue in the first quarter.
Block stock chart by year to date.
(tags to translate)Earnings
