Block laying off about 4,000 employees, nearly half of its workforce

To obstruct It said Thursday it would lay off more than 4,000 employees, or about half its headcount. The stock skyrocketed more than 24% in extended trading.

“Today we shared a difficult decision with our team,” wrote Block co-founder and CEO Jack Dorsey. letter to shareholders. “We are reducing the block by almost half, from over 10,000 people to just under 6,000, which means more than 4,000 people have been asked to leave or undergo consultations.”

Block CFO Amrita Ahuja said the layoffs will position the company “for the next phase of long-term growth.”

“At a time when our business is accelerating, we are choosing to change the way we work and see the opportunity to move faster with smaller, highly skilled teams using AI to automate more work,” Ahuja wrote.

Dorsey said he expects other companies to similarly overhaul their workforces as they see further productivity gains from “intelligence tools.”

“I believe that within the next year the majority of companies will reach the same conclusion and make similar structural changes,” Dorsey said. “I’d rather get there honestly and on our own terms rather than being pushed reactively.”

Like other companies on Pinterest, CrowdStrike And Chegg They recently announced layoffs and directly tied them to AI reshaping the workforce.

Inside an X postDorsey said he faces the choice of laying off staff for several months or years “as this shift continues” or “taking immediate action on this.”

“I chose the latter,” Dorsey wrote. “Repeated disruptions destroy morale, focus, and customer and shareholder confidence in our ability to lead.”

The company had 10,205 employees worldwide as of December 31, 2025. annual filing.

Block announced the layoffs along with its fourth-quarter earnings results.

The payments company reported adjusted earnings per share of 65 cents per share on revenue of $6.25 billion, according to LSEG, while analysts had forecast 65 cents per share and $6.24 billion.

Gross profit increased by 24% compared to the previous year, reaching $2.87 billion.

For the full year, the company said it forecast adjusted earnings per share of $3.66. Analysts expected $3.22 per share, according to LSEG.

As a result of the workforce reduction, the company expects to incur expenses of approximately $450 million to $500 million, consisting primarily of non-cash expenses related to severance pay, employee benefits and stock vesting. securities filing.

Block expects most of the restructuring charges to occur in the first quarter.