'The core thesis is simple. Intelligence tools have changed what it means to build and run a company'
Tech company Block, the parent of payment services Square and Cash App, is cutting nearly half of its global workforce, shrinking from more than 10,000 employees to just under 6,000, according to a letter to shareholders from CEO Jack Dorsey.
Dorsey said more than 4,000 employees are either “being asked to leave or entering into consultation” as part of the restructuring. He described the decision as difficult but necessary, despite recent strong financial performance.
Dorsey said Block’s move is being driven by artificial intelligence (AI) and related “intelligence tools.”
“The core thesis is simple. Intelligence tools have changed what it means to build and run a company. We’re already seeing it internally. A significantly smaller team, using the tools we’re building, can do more and do it better. And intelligence tool capabilities are compounding faster every week.”
He argued that Block is moving ahead of competitors, saying he believes “the majority of companies will reach the same conclusion and make similar structural changes” within the next year.
Pandemic overhiring and questions about AI’s impact
Block’s move comes within a broader wave of technology sector layoffs linked to AI. Here are some employers that are said to be laying off workers amid the rise of AI:
IgniteTech, meanwhile, decided to replace nearly 80% of his workforce after a company‑wide push to adopt AI.
At the same time, experts quoted by CBC question how much of the latest cuts are truly driven by AI versus pandemic overhiring and cost discipline. Many large tech firms expanded rapidly during COVID-19. Block’s workforce rose from about 3,800 employees in 2019 to more than 10,000 in 2025.
“In Block’s case, [the layoffs] looks like a mix of AI efficiency gains and an overdue clean-up of corporate bloat,” analyst Matt Britzman of Hargreaves Lansdown told Reuters, in comments cited by CBC.
Tom Davenport, a professor of IT at Babson College, told CBC that in a survey of more than 1,000 executives he conducted in late 2025, many organisations reported hiring freezes or cuts “because of the promise of AI,” but only around two per cent were making reductions directly tied to implemented AI systems.
Despite high-profile layoffs, CBC reports that demand for technology talent remains. Nathan Wawruck, a tech recruitment consultant at Robert Half, said many workers are finding roles in mid-sized companies and non-tech sectors expanding their digital and AI capabilities.
Strong results, investor support
Dorsey described 2025 as “a strong year” for Block, saying gross profit growth more than doubled from the first to the fourth quarter.
He said the company surpassed the Rule of 40 in the fourth quarter, reignited Cash App network growth, accelerated Square’s gross payment volume and had its strongest year on record for new volume added. Block also increased share repurchases and shipped its first Proto bitcoin mining units.
According to the company’s fourth-quarter earnings report, Block said gross profit rose 24 per cent from a year earlier. After the layoff and earnings announcements, the company’s shares gained about five per cent on Thursday to close at US$54.53, then climbed to nearly US$69 in after-hours trading.
