Fintech company Block lays off 4,000 of its 10,000 staff, citing gains from AI

[Omaha Steve]

Source: AP

By ELAINE KURTENBACH
Updated 12:34 AM CST, February 27, 2026

BANGKOK (AP) — Shares in the financial technology company Block soared more than 20% in premarket trading Friday after its CEO announced it was laying off more than 4,000 of its 10,000 plus employees, reconfiguring to capitalize on its use of artificial intelligence.

“The core thesis is simple. Intelligence tools have changed what it means to build and run a company,” Jack Dorsey said in a letter to shareholders in Block, the parent company to online payment platforms such as Square and Cash App. “A significantly smaller team, using the tools we’re building, can do more and do it better,” he said.

Dorsey’s comments explicitly naming AI as a key driver behind the move were also posted on X, or Twitter, a company he co-founded. The assertion that the job cuts will add to Block’s profitability and efficiency led investors to jump in and buy, analysts said.

Block’s shares gained 5% Thursday to $54.53, before it reported its earnings. They shot up to nearly $69 in after-hours trading. The mobile payments services provider reported its fourth quarter gross profit jumped 24% from a year earlier.



Read more: https://apnews.com/article/block-dorsey-layoffs-ai-jobs-18e00a0b278977b0a87893f55e3db7bb

[highplainsdem]

1. Unethical capitalists just love layoffs.

[patphil]

2. The cost of AI is paid by the workers fired.

And the rich get richer.
The rest of us don't.

I thought I'd add what I feel is really going on here.
AI will result in massive job losses across the white and blue collar sectors over the next 10 years or so. Many millions of jobs will be lost.
So, what are these unemployed workers going to do?
The immigrants have to go to make room for all these US citizens who are losing their jobs to AI.
We're going to be forced to do the jobs the immigrants are now doing...either that or go homeless and hungry.

The long term republican plan is to create a new American society. It will consist of a couple million rich folks who rule the nation, plus a overseer class of several million enforcers who will keep the rest of us in line.
We, the overwhelming majority of Americans, will being re-cast as the new American Serfs. We will exist to serve the rich, and will be cast aside when we can no longer work.

This is the republican view of the future as I see it.

[TheFarseer]

3. Any candidate for anything

That comes out and says “Fuck AI. I’m stopping this shit” Will win in a landslide despite being outspent 200 to 1.

[WSHazel]

4. What does Block do?

I have not done a deep dive on Block, but I do know that at least 1/3 of its revenue comes from crypto transactions, which has had a bad couple of quarters. The company itself seems like a hodge podge of barely related businesses. Honestly, this company seems a lot like the Tender company in the HBO show, Industry, and I wonder if the writers of Industry were looking at this company.

I am not saying Block is a fraud, but this is a strange company and Dorsey may be hiding financial issues with an "AI is coming to the rescue" press release.

[genxlib]

5. I am suspicious of a 40% reduction at one time

It feels like this would take place more naturally as an erosion over an extended period of time.

More importantly, 4000 people are just SOL while Wall Street cheers.

Wall Street never seems to recognize the erosion of the customer base that goes along with something like this. Every company feels like they can get away with it but at the macro level this kind of reduction across the entire economy is going to harm everyone. Even Block who will have fewer transactions to process because there are fewer people out there with spending money.

But Wall Street parties like its 1999

[bucolic_frolic]

6. Capitalist Cannibalism

Roast me another, with mesquite sauce

[mathematic]

7. They tripled headcount from '19 to '23 and after this reduction, they'll still be +50% from then

Block, like every business that makes software, massively hired during the covid era.

Like all the other layoffs mentioning "AI", they'd rather pitch this as accomplishment of using new technology to become more productive rather than as a correction from the mistake of overhiring.

[fujiyamasan]

12. Yes this is very true

it’s also reflected in the stock price for both this and PayPal. Both are over 75% off their highs around 2022.

AI is a good excuse for incompetent leadership. Nice way to pump the stock price too.

[LudwigPastorius]

8. Fuck it. Fire everybody and watch the stock price soar %100!

[BaronChocula]

9. CEO jack dorsey

endorsed rfk jr.'s prez campaign. That should say enough.

[kimbutgar]

10. I hope this whole AI industry backfires on them !

[efhmc]

11. Is there any way we can use AI on the people in the nazi's administration?