Block lays off 40% of workforce as it goes all-in on AI tools

Source: Ars Technica

Background

The staff reduction at Block comes as anxiety rises about AI leading to job losses across vast parts of the economy. Investors and economists are grappling with an influx of U.S. economic data and corporate announcements in an effort to gauge the technology’s impact on the labor market.

The latest non‑farm payrolls figures were better than expected, suggesting the domestic jobs market was stabilizing, but several large U.S. companies have committed to cutting staff. In late January, Amazon, UPS, Dow, Nike, Home Depot, and others announced a combined 52,000 job cuts.

Block’s workforce reduction

Block announced a layoff affecting 40 % of its workforce as it goes “all‑in” on AI tools. CEO Jack Dorsey said the cuts came despite what he described as a “strong” financial performance in 2025.

Block’s AI and Bitcoin strategy

• Block has made a contrarian bet on bitcoin at a time when many payment companies favored stablecoins—cash‑like digital tokens that became regulated in the U.S. last year.
• Dorsey, a self‑identified “bitcoin maximalist,” believes the digital currency will eventually eclipse the dollar.
• The company offers payment services in bitcoin for merchants and consumers and suffered a loss on its own bitcoin holdings as the price of the cryptocurrency dropped 23 % this year.

In contrast, payment companies that bet on stablecoins experienced a boost. For example, Stripe reported that its stablecoin transaction volumes increased fourfold last year.

Financial performance

In its fiscal fourth quarter, Block reported revenue of almost $6.3 billion, in line with Wall Street expectations. Earnings fell to 19 cents per share, largely due to a $234 million hit on its bitcoin holdings.