💰👔⚠️ Block just cut 40% of its workforce: -4,000 jobs.
3 March 2026. Inside this issue:
Jack Dorsey’s Block has cut 4,000 jobs - nearly half its workforce - citing AI tools
Block’s stock jumped 24% in after-hours trading; the business is profitable and growing
Dorsey predicts most companies will reach the same conclusion within 12 months
The move dwarfs recent AI-linked cuts at Pinterest, CrowdStrike and Chegg
✍️ Essentials
Block, the fintech company behind Square, Cash App and Afterpay, has cut more than 4,000 employees - from over 10,000 to just under 6,000. CEO Jack Dorsey was direct: “Intelligence tools have changed what it means to build and run a company. A significantly smaller team can do more and do it better.” The Q4 earnings showed gross profit growing. This is not a distress cut. Restructuring costs of $450-500 million are front-loaded in Q1; affected staff receive 20 weeks’ severance, six months of health cover and $5,000 in transition support.
Dorsey told analysts a capability shift in December changed his timeline: “The models just got an order of magnitude more capable.” His forecast: “Within the next year, I believe the majority of companies will reach the same conclusion.”
🐻 Bear’s take
The significance is not the scale - it is the clarity. Dorsey linked headcount reduction directly to AI productivity from a position of strength. That framing will appear in board meetings this week. If your competitor can run your market with half the people, your cost base is a liability.
🚨 Bear in mind
Who is exposed: process-heavy knowledge workers in operations, finance, legal and HR at profitable tech companies. The timeline has shortened.
Who benefits: lean AI-native teams and founders already running agent-centric workflows.
What to consider: build your case for AI-driven productivity before your company builds it without you. Document what you automate and what only you can do.