Jack Dorsey-led Block cuts 40% of staff after AI tests
Jack Dorsey, CEO of Block, announced that the company laid off 40% of its staff, more than 4,000 people.
The move comes after testing new AI tools showed Block could run smoothly with a much smaller team.
Dorsey said these layoffs are about being proactive and adapting to how AI is changing the way companies work.
Block AI trial finds 6,000 employees
Dorsey and his team tried out advanced AI models like Anthropic's Opus 4.6 and OpenAI's Codex 5.3 last December.
The takeaway? Block could meet its service and regulatory needs with about 6,000 employees instead of its current headcount.
On a note to the board, Dorsey and Sequoia partner Roelof Botha called this shift a fundamental organizational shift away from traditional management hierarchies, aiming to make Block stronger by planning ahead rather than reacting in crisis mode.