Block Cuts Nearly Half Its Workforce in AI-Native Shift, Shares Surge More Than 22% After Hours

Block is the parent company of Square, Cash App and Afterpay, spanning merchant payments, consumer payments and buy now, pay later services. Founder Jack Dorsey argues that AI has transformed software development and corporate operations, enabling smaller, flatter teams to increase output. The downsizing has become a major test of the technology sector’s push to use AI to boost efficiency.

On February 26, 2026, Block announced plans to cut more than 4,000 jobs, or over 40% of its workforce, reducing headcount from more than 10,000 to fewer than 6,000. Restructuring costs were estimated at $450 million to $500 million. Fourth-quarter gross profit rose 24% from a year earlier to $2.87 billion, while the results and transformation plan sent shares, traded under the ticker XYZ, surging more than 22% after hours.