Jack Dorsey blames AI for cutting nearly half of Block's workforce. But a closer look at the company's history of overhiring and structural problems tells a different story.
Around 4,000 of the company's more than 10,000 employees are being let go. Dorsey says AI tools that enable smaller, flatter teams to work in fundamentally new ways are behind the decision.
The company isn't struggling financially, gross profit is growing and the business is healthy, according to Dorsey. He says he deliberately chose one big cut instead of dragging things out with repeated rounds of layoffs.
Affected employees will receive 20 weeks' salary plus one week per year of service, stock vesting through the end of May, six months of health insurance, their company equipment, and $5,000 in transition assistance. Following the announcement, Block's stock jumped roughly 25 percent.
Dorsey via X
