Former Twitter Founder Lays Off 4,000 Employees at “Block” Amid AI Transformations

In a dramatic move, Twitter co-founder Jack Dorsey has laid off nearly 4,000 employees at his financial technology company, Block, owner of the payment service Cash App. Dorsey announced on X Friday: “We’ve made one of the hardest decisions in our company’s history, reducing our workforce from over 10,000 to under 6,000, meaning more than 4,000 employees are being asked to leave.”

He clarified that the layoffs are not due to financial trouble, noting that “gross profit continues to grow,” and emphasized that artificial intelligence tools are enabling “a new way of working that fundamentally changes how the company operates.” Dorsey chose immediate layoffs over gradual reductions, calling the latter more painful. He concluded: “I’m grateful for you, and I’m sorry to put you through this. You built what this company is today.”

Meanwhile, Abdullah Asiri, founder of Lucidia, stated that the decision aims to boost the productivity of remaining employees through AI, noting that “the mass layoffs will be offset by technology-enhanced productivity.” Block’s stock surged 26% following the announcement. Experts, including Mohammed Qassem, warned that a jobquake triggered by AI is inevitable, urging that “governments must enact laws to protect employees.”