Jack Dorsey fires 40 per cent of Block employees: 'AI will change the way the company is run'

Block Inc, the fintech company founded by Jack Dorsey, has announced the cutting of more than 4,000 jobs, or around 40% of its total workforce. A decision that the group presents as a strategic choice linked to the impact of AI on productivity and business organisation. Block, which controls Square and Cash App, speaks openly of a 'bet' on AI.

According to Dorsey, former co-founder of Twitter, artificial intelligence tools have radically changed the way businesses are built and run. During the call with analysts, the CEO explained that 'something changed in December last year', when new AI models took a significant leap forward. AI, he pointed out, no longer represents a marginal efficiency improvement, but is now applicable 'to almost every single thing we do'. Any limitations, he added, are 'of application, not technology'. The group has invested in proprietary tools, including an internal system called 'Goose', with the aim of automating processes, accelerating development and reducing operating costs. "Better to act proactively now than to be forced to do so reactively," is the line indicated by management.

The Block case is part of a broader trend in the technology sector. In recent months, several biggies have linked job cuts to AI-related efficiency gains. Salesforce eliminated thousands of customer support roles citing automation, while Pinterest announced staff reductions to focus resources on AI-related positions. Competitive pressure also remains high in fintech and payments. Some analysts, however, question the real extent of the transformation: is AI really reshaping corporate structures or is it being used as a justification for cuts already planned? The scale of Block's intervention makes it difficult to reduce the operation to a simple tactical optimisation. Dorsey and CFO Amrita Ahuja have ruled out that the decision is linked to immediate difficulties. In 2025 Block reported $10.36 billion in gross profit, up 17% year-on-year, with quarterly revenues exceeding expectations. However, the stock had lost about 40 per cent since the beginning of 2025 amid growing competition and rising costs, partly due to Cash App's expansion of credit products.

The restructuring will entail costs estimated at between 450 and 500 million dollars. The employees involved will be guaranteed benefits, six months of health coverage and a financial contribution for the transition. Beyond the numbers, the signal for the labour market is relevant. If a fintech group with solid accounts decides to reduce its workforce by 40% believing that AI changes the very 'structure' of work, a possible paradigm shift is looming. The most exposed functions are administrative, support, analysis and standardised development, areas where generative AI and software agents can replace or significantly reduce human intervention. Not just automation, but reorganisation: fewer hierarchical levels, fewer middle managers, greater integration of AI in decision-making processes. Dorsey predicts that 'most companies' will reach the same conclusion within a year. Should this prediction materialise, 2026 could mark the start of a phase of large-scale AI-related structural restructuring.