Block announced plans to reduce its workforce by roughly half, eliminating more than 4,000 positions as the payments technology company restructures around artificial intelligence-driven operations.
CEO Jack Dorsey described the layoffs as a strategic move, not a sign of trouble. He said making all the cuts at once would give the company more clarity as it shifts to AI. The workforce will drop from about 10,000 to just under 6,000 people.
Employees who are leaving will get 20 weeks of base pay, plus one extra week for every year they worked at Block. Their equity will vest through the end of May. They will also keep their company devices, get six months of health coverage, and receive a $5,000 transition payment.
Dorsey said some of the company’s growth came from choices made during the pandemic, when Block set up two separate structures: one for its small business payments and another for its consumer financial app. The company started merging these in mid-2024. Block also became more complex as it moved into lending, banking, and buy-now, pay-later services.
Dorsey said Block will use AI throughout its business, from product development to workflows and customer service. He added that smaller teams working with AI tools will change how the company runs.
Investors reacted strongly to the news. Block’s stock jumped 17% on Friday morning and is up about 22% over the past week, though it is still slightly down for the year.
Featured CoursesRecent news
D-Wave Stock Rises 2.7% Despite 81% Revenue Drop: Here’s Why
Despite D-Wave Quantum’s 81% revenue drop, shares rose 2.7% in premarket trading. Investors focused on a jump in bookings, indicating real business progress. Here’s a look at the numbers and why the company’s outlook matters more than its recent performance. First-quarter revenue fell to $2.86 million, down from last year and below the $4.2 million […]
GameStop Shares Drop 4.7% After eBay Turns Down $56B Takeover Offer
eBay swiftly rejected GameStop’s $56 billion takeover bid, calling it neither credible nor attractive. GameStop shares fell 4.7% in premarket trading. This decision raises questions about what it means for both companies and whether Ryan Cohen will give up or try again. Most investors were not surprised. Since the bid was announced, eBay’s stock traded […]
Hims Stock Drops 14.6% After Posting an Unexpected Loss
Hims and Hers Health’s latest results disappointed investors. Shares dropped 14.6% in premarket trading on Tuesday. The company posted a first-quarter loss, catching analysts off guard. They had expected a profit. Here’s a look at what happened, what the company’s guidance means for the future, and whether the stock’s sharp drop is justified. The subscriber […]
Trade with fewer limits
Day trade with fewer limits at fast speed. Buy stocks and ETFs at low fees.