Block announced a plan on February 26, 2026, to lay off over 4,000 employees. This reduction represents nearly half of the company's total workforce. Jack Dorsey attributed the cuts to advancements in artificial intelligence.
Block shares surged more than 20% in after-hours trading following the announcement. The company raised its 2026 financial targets alongside the restructuring news. Block expects to incur between $450 million and $500 million in restructuring charges. These costs will primarily impact the first quarter of 2026.
The move signals a strategic shift toward smaller, agile teams that leverage AI for efficiency. Dorsey stated that intelligence tools have fundamentally changed how companies are built and operated. He suggested that most companies are late to this realization and will likely undergo similar structural changes.