Jack Dorsey has just reduced Block’s workforce by 50% — and he warns that your business could be facing the same situation soon

Jack Dorsey’s Bold Workforce Reduction at Block

Jack Dorsey, who has openly expressed his admiration for Elon Musk, appears to be following in Musk’s footsteps with a major move of his own.

On Thursday, Dorsey revealed that Block—the company behind Square, Cash App, and Tidal—will be letting go of over 4,000 employees. This decision will shrink Block’s workforce from more than 10,000 to just under 6,000, effectively cutting nearly half of its global staff. Investors responded positively, driving Block’s stock price up by more than 24% in after-hours trading.

Following a Precedent Set by Musk

This isn’t the first time a tech giant has made such a sweeping change. In November 2022, Elon Musk famously reduced Twitter’s workforce by about 50% shortly after taking the company private—a move that sent shockwaves through Silicon Valley and redefined the boundaries for CEO-led layoffs.

Dorsey had a unique vantage point during Musk’s Twitter overhaul. Instead of cashing out, he rolled his 2.4% stake in Twitter into Musk’s acquisition, making him one of the largest external shareholders in the company now known as X.

A Complex Relationship and Shared Interests

The dynamic between Dorsey and Musk has been anything but ordinary. Their interactions have ranged from mutual support to public disagreements and back again. Dorsey initially backed Musk’s purchase of Twitter but later suggested Musk should have reconsidered. He was also instrumental in launching Bluesky, a decentralized alternative to Twitter, before stepping down from its board and later referring to X as “freedom technology.” Both leaders are outspoken proponents of Bitcoin, with Block and Tesla each holding the cryptocurrency as part of their assets.

Layoffs Framed as Strategic, Not Desperate

Dorsey described the layoffs as a forward-thinking and considerate decision, rather than a sign of financial distress—though the thousands affected may see things differently. “Ongoing rounds of layoffs damage morale, focus, and the trust our customers and shareholders place in us,” he wrote on X. He predicted that most companies will reach a similar point within a year, adding, “I’d rather get there transparently and on our own terms than be forced into it reactively.”

AI as the Driving Force

Officially, the restructuring is being attributed to advancements in artificial intelligence. Block’s CFO, Amrita Ahuja, stated that the company aims to “move faster with smaller, highly skilled teams leveraging AI to automate more tasks.” Other major companies, including Salesforce and Amazon, have also made significant workforce reductions citing AI-driven productivity gains. However, a recent Forrester Research report questioned whether these benefits are as substantial as claimed, suggesting that financial motivations may play a larger role in these decisions.

TechCrunch Founder Summit 2026

Save up to $300 or 30% on tickets!

• Join over 1,000 founders and investors for a day dedicated to growth, execution, and scaling real businesses.
• Gain insights from industry leaders and connect with peers facing similar challenges.
• Walk away with actionable strategies to implement immediately.

Location: Boston, MA
Date: June 9, 2026
Offer ends March 13.

REGISTER NOW