Jack Dorsey makes a grim prediction about the future of work as he lays off 4,000 Block employees in AI push

In a letter to shareholders, the billionaire positioned himself as something of a trailblazer, despite years of tech companies making aggressive cuts to staff.

[Images: Greg Nash/Pool/AFP via Getty Images, Adobe Stock]

Jack Dorsey, CEO of Block Inc, is not only laying off nearly half of the company’s workforce, but he wants investors to think he’s an AI-focused trailblazer for doing so. 

In a letter to shareholders on Thursday, Dorsey shared that Block’s workforce is shrinking from over 10,000 people to just below 6,000 people, with some employees entering consultation. 

Dorsey credits “intelligence tools” with motivating the change, explaining that these tools and a “significantly smaller team” will allow the company to be better and do more. 

Block owns fintech brands such as the Square point-of-sale system, Cash App, and Afterpay, along with the music streaming service Tidal. 

If the idea of laying off employees in favor of leaner operations sounds familiar, don’t tell Dorsey that. He frames his announcement to embrace AI and put thousands of people out of a job as a forward-looking decision. 

“I don’t think we’re early to this realization. I think most companies are late,” Dorsey states. “Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes. I’d rather get there honestly and on our own terms than be forced into it reactively.”

Block investors cheer the news

All of this came in a letter dedicated to Block’s quarter four of 2025. Dorsey shared that Block’s gross profits doubled from quarter one to four immediately after announcing the layoffs. 

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