
Block's 40% Cut Sparks AI-Era Shake-Up for White-Collar Jobs
Block CEO Jack Dorsey announced a one-time reduction of the company’s staff from just over 10,000 to under 6,000, cutting nearly half with a severance package of 20 weeks base pay plus one week per year of service, continued equity vesting through May, six months of health coverage, device retention, and a $5,000 payout. He argued a single, decisive cut avoids morale damage from repeated rounds and reflects an AI‑driven shift to smaller, flatter teams. The move could signal a broader trend as tech firms reassess headcount in an AI-enabled era, and Block’s stock rose about 20% after hours.













