tech
February 28, 2026
AI vs People Debate Rages as Block Cut 40% of Workforce
Fintech company Block laid off 40% of its workforce as intelligence tools reshape workflow, amid impressive Q4 financial results and shares rising 20%
TL;DR
- Fintech company Block laid off 40% of its workforce, impacting approximately 4,000 employees.
- CEO Jack Dorsey cited intelligence tools as the reason for the layoffs, stating they have changed how companies are built and run.
- The job cuts occurred alongside strong Q4 financial results, with gross profit doubling and company shares rising 20% post-announcement.
- Block believes embedding intelligence at every layer of the company will save time and boost operational efficiency.
- The company's AI-powered initiatives include an open-source AI agent named Goose, AI in Square dashboards, and AI-enabled marketing campaigns.
- Block is among several major firms that have cut jobs, with thousands of tech roles eliminated in 2025 and early 2026 due to AI.
- The restructuring is expected to cost between US$450 - US$500 million, with a comprehensive severance package offered to laid-off employees.
- Meta CEO Mark Zuckerberg echoed the sentiment that AI will dramatically change the way we work in 2026.
Continue reading the original article