Block Cuts Over 4,000 Jobs in AI-Driven Restructuring; Shares Rise Up to 27%

Block, the fintech company co-founded by Jack Dorsey, announced layoffs of over 4,000 employees, nearly half its workforce, as part of a strategic shift to integrate artificial intelligence (AI) tools across its operations. Dorsey emphasized that the decision is not due to financial distress but reflects a structural change enabling smaller, more efficient teams. The company expects restructuring costs of $450-$500 million. Following the announcement, Block's shares surged up to 27%, reflecting investor optimism about AI-driven productivity gains. Severance packages include extended salary, equity vesting, and healthcare support. Dorsey anticipates other companies will make similar workforce adjustments amid rapid AI adoption.