Block to Lay Off 40% of Workforce, Citing AI Efficiency

Jack Dorsey's payments company cites artificial intelligence as reason for major staff cuts.

Feb. 26, 2026 at 11:06pm by Ben Kaplan

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Block, the tech company behind the Square payments product and Cash App, announced it will lay off 40% of its workforce, citing increased efficiency from artificial intelligence as the primary driver behind the downsizing.

Why it matters

The layoffs at Block, co-founded by former Twitter CEO Jack Dorsey, reflect the growing impact of AI on the tech industry and the workforce. As AI capabilities advance, companies are finding ways to automate more tasks, leading to job losses in certain roles.

The details

Block, formerly known as Square, said the layoffs will impact approximately 2,600 employees globally. The company stated that AI has enabled it to be more efficient in many business areas, reducing the need for as many human workers.

  • Block announced the layoffs on February 26, 2026.

The players

Block

The tech company behind the Square payments product and Cash App.

Jack Dorsey

The co-founder of Block and former CEO of Twitter.

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What they’re saying

“We've made the difficult decision to reduce our workforce by approximately 40% in order to become a more focused, nimble company where every team member is aligned with our clear strategy and priorities.”

— Jack Dorsey, Co-founder, Block (sfchronicle.com)

What’s next

Block has not provided specific details on which departments or roles will be impacted by the layoffs, but the company says it will work to support affected employees during the transition.

The takeaway

The Block layoffs highlight the growing influence of AI in the tech industry, as companies seek to automate more tasks and become more efficient. This trend is likely to continue, with AI expected to have a significant impact on the future of work across many sectors.