BREAKING: Payments giant Block is set to cut over 4,000 jobs, nearly half of its workforce, as part of a dramatic shift towards an AI-centric business model. The company confirmed this urgent decision in a message to employees, revealing it will reduce its headcount from more than 10,000 to just under 6,000.
The layoffs are effective immediately, with affected workers either departing now or entering a consultation phase. This sweeping change, announced on October 16, 2023, comes in spite of the company’s claims that gross profits are increasing and profitability is on the rise. Instead, Block cited advancements in AI as the main driver for this significant workforce reduction, stating that “the intelligence tools we’re creating and using” are reshaping the operational landscape.
Employees impacted by this decision will receive 20 weeks’ salary plus an additional week for every year of service, equity vested through the end of May, six months of healthcare coverage, and $5,000 in transition support.
The urgency of this announcement highlights growing fears about the impact of AI on jobs globally. In the UK, unemployment recently rose to 5.2 percent, and many companies are slowing hiring as automation becomes more prevalent. Research indicates that a third of UK scale-up founders anticipate AI-driven job cuts within the next year, with 58 percent already delaying recruitment efforts due to AI adoption.
Block’s decision reflects a broader trend in the tech industry, where over 30,000 tech roles have reportedly been cut since early 2026, despite many firms continuing to post robust revenues. The company emphasized that this overhaul is crucial for embedding AI into “everything we do – how we work, how we create, how we serve our customers.”
In a poignant note to employees, Block clarified that the layoffs were “not a reflection” of individual contributions, acknowledging the emotional impact of this decision. The company believes that taking “a hard, clear action now” will ultimately allow for a stronger, more agile organization centered around AI.
As concerns about AI’s impact on employment continue to escalate, Block’s announcement serves as a stark reminder of the rapid changes facing the workforce. The situation is developing, and analysts will be watching closely to see how this move affects both the company and the broader labor market in the coming months.
Stay tuned for updates on this critical situation as it unfolds.
