Block Fires 40% of Workforce Despite Being Profitable, Bets on AI ??

Published on February 27, 2026 | Translated from Spanish

Jack Dorsey, CEO of Block, announced the elimination of more than 4,000 jobs, 40% of the workforce. The decision is surprising because the company is profitable and its shares rose after the announcement. Dorsey justifies the move as a proactive strategic shift, driven by artificial intelligence, to create a flatter and more efficient structure. The laid-off employees will receive a generous severance package.

A modern, empty, and automated office, with robots and AI charts on screens, contrasting with stacks of cardboard boxes from layoffs.

The Technical Restructuring: Small Teams and AI as the Core ?™ï?

The strategy is based on the premise that current AI tools allow maintaining or increasing productivity with smaller teams and fewer layers of management. This implies a deep reorganization of development and operations workflows. The goal is to accelerate decision-making and reduce internal complexity, prioritizing the automation of repetitive tasks and the use of language models for certain functions.

Dorsey Prescribes Corporate Slimming: Fewer Employees, More Bots ??/h3>

The new corporate philosophy seems clear: if a bot can assist you in a meeting, write your code, or draft a report, perhaps the position you hold is expendable. It's every CEO's dream: a workforce that doesn't get sick, doesn't ask for raises, and works 24/7. That said, with a severance package that, ironically, only humans can receive. The future is flat, automated, and with far fewer coffee companions.