Block, Co-founded by Jack Dorsey, Announces Workforce Reduction
Block, Inc., the financial services and digital payments company co-founded by Jack Dorsey, is restructuring its operations and reducing its workforce by approximately 4,000 employees, the company announced on February 27, 2026. This move, representing a significant portion of its staff, is being made as the company focuses on leveraging artificial intelligence (AI) and streamlining its business.
The decision to reduce headcount comes as Block aims to improve efficiency and position itself for future growth. According to reports, the company is betting heavily on the potential of AI to transform its operations and product offerings. Shares of Block rose sharply following the announcement, indicating investor confidence in the company’s strategic direction.
Jack Dorsey, who previously served as CEO of Twitter (now X) and currently chairs Block, has been a vocal advocate for technological innovation. The restructuring reflects a broader trend within the tech industry, where companies are increasingly turning to AI to automate tasks and reduce costs.
The company’s move also comes amid a changing economic landscape for the payments industry. Some analysts suggest that Block’s scaling back to a size comparable to its 2019 levels signals a reassessment of growth strategies in the face of evolving market dynamics.
Block, known for its Square platform which provides payment processing services to businesses, and its Cash App peer-to-peer payment service, has experienced rapid growth in recent years. However, the company has also faced increased competition and regulatory scrutiny.
As of May 2025, Forbes estimated Jack Dorsey’s net worth at $3.8 billion. Dorsey co-founded Twitter in 2007 and served as CEO during two separate periods, from 2007-2008 and again from 2015-2021. He was born November 19, 1976, in St. Louis, Missouri, and attended both the University of Missouri–Rolla and New York University before dropping out to pursue his entrepreneurial ventures.
