Block cuts 40% of workforce as Dorsey says AI tools have changed how to build and run a company

by | Feb 28, 2026 | Latest E-commerce News & Updates

Block announced plans to cut 40% of its staff, affecting more than 4,000 employees, as it shifts its focus toward artificial intelligence. CEO Jack Dorsey attributed the decision to the efficiency of new intelligence tools, stating that AI has fundamentally changed how companies operate. Despite the mass layoffs, the firm reported strong quarterly revenue of $6.25 billion, causing shares to surge over 20% in after-hours trading.

Paul Drecksler is the founder and editor of Shopifreaks, covering the most important stories in e-commerce.

Companies: Block

Never miss important e-commerce news

Our weekly newsletter is read religiously by 20,000+ e-commerce professionals.

Loading...