By Sanya Mansoor
Publication Date: 2026-02-27 17:11:00
Fintech company Block announced it would lay off 4,000 of its 10,000 employees due to AI productivity gains.
“Intelligence tools have changed what it means to build and run a business,” Block CEO Jack Dorsey said in a letter to shareholders on Thursday. “We’re already seeing it internally. A much smaller team can achieve more and better results with the tools we’re developing. And the capabilities of the intelligence tools are getting faster every week.” Block is the parent company for online payment platforms such as Square and Cash App.
So far, analysts say, investors appear encouraged by Dorsey’s assertion that the cuts and increased reliance on AI will boost profitability. Shares rose more than 20% in premarket trading on Friday.
Block’s layoffs reflect broader fears about job losses due to the increasing use of AI. Goldman Sachs noted in February that the increasing pace of AI adoption could lead to a rise in unemployment this year, estimating that…
