Block Cuts 4,000 Jobs in AI-Driven Restructuring Effort
Block Inc., formerly known as Square, has undergone a significant restructuring effort. On February 26, the company announced it would cut its workforce from over 10,000 employees to approximately 6,000, a reduction of about 40%. This move is being referred to as an 'AI reset' by CEO Jack Dorsey.
Dorsey emphasized that this restructuring will drive margin expansion and allow the company to operate with a smaller, flatter model powered by artificial intelligence tools rather than human middle management. He cited specific tools already in development or deployment, such as Square Managerbot and Builderbot, which aim to deliver real-time insights and recommendations to sellers on the platform and accelerate internal software development workflows.
The company's shares jumped over 16% after the announcement, with gains extending to as much as 24% in after-hours trading. Block is one of the most crypto-native public companies in the US, operating Cash App, which allows millions of users to buy and sell Bitcoin, as well as Bitkey, a self-custody hardware wallet.