Block Layoffs 2026: Jack Dorsey Announces Massive Job Cuts, Over 40% Workforce Axed Amid AI Restructuring

Block, led by Twitter co-founder Jack Dorsey, has announced one of the most significant job cuts in the global tech sector in recent times, laying off nearly 40% of its workforce in a single move. The restructuring will reduce the company's employee strength from over 10,000 to just under 6,000, impacting more than 4,000 roles across departments.

Block Layoffs 2026: Jack Dorsey Announces Massive Job Cuts, Over 40% Roles Axed in AI Shift

Announcing the decision on X (formerly Twitter), CEO Dorsey said the layoffs were driven by the rapid adoption of artificial intelligence (AI), which is fundamentally transforming how companies are built and operated. He emphasised that the move does not reflect financial weakness, but rather a strategic shift toward leaner, AI-first operations.

According to him, Block remains a healthy business, but one that must adapt quickly to new technological realities.

What is Block? Know About Its Operations

Block operates major digital platforms such as Square, Cash App and Tidal, all of which are expected to feel the impact of the organisational overhaul.

Before the layoffs, Block employed over 10,000 people globally. After the cuts, the workforce will stand at less than 6,000, marking one of the sharpest headcount reductions by a major technology firm in recent years.

This is also the first time Block has officially cited AI as the primary reason for job losses, despite having carried out multiple rounds of layoffs since 2024.

Severance Package and Employee Benefits At Block

Block has announced a detailed severance and support plan for affected employees. Those laid off will receive a base severance of 20 weeks' salary, along with an additional one week of pay for every year of service at the company. Employees' equity will remain vested through the end of May, providing continued participation in the company's value during the transition period.

In addition, Block is offering six months of healthcare coverage to departing staff and a one-time transition support payment of $5,000, aimed at easing the immediate financial impact and supporting career transitions.

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