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5 months ago

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Version 15 months ago

What changed: Updated with specific details on the scale of layoffs (from 10,000 to 6,000 staff), the 40% reduction rate, and Jack Dorsey's organizational vision.

StocksHigh ImpactUpdated•Originally published 26 February 2026•Updated 27 February 2026•

1 min read

Block Shares Surge 20% as Jack Dorsey Plans 40% Job Cuts for AI Pivot

Key Facts

1Block plans to lay off nearly half of its workforce in a move to embrace artificial intelligence.

2The company's stock surged 20% as Wall Street rewarded the massive job cuts.

3Block is the parent company of both Square and Cash App.

Block Inc. shares surged 20% following an announcement by CEO Jack Dorsey to restructure the company into a "smaller and flatter" organization. The strategic shift involves reducing the total workforce by 40%, bringing the employee count down from over 10,000 to just under 6,000. This massive reduction is part of a deliberate move to integrate artificial intelligence across the operations of Square and Cash App. Wall Street responded positively to the aggressive cost-cutting measures, viewing them as a path toward long-term profitability and operational efficiency. Dorsey’s philosophy aims to streamline the business model while leveraging emerging technologies to drive future growth. This restructuring marks one of the most significant workforce reductions in the fintech sector to date.

Sources:

marketwatch.com

cointelegraph.com