The move will result in the elimination of more than 4,000 positions, bringing the company’s total workforce to just under 6,000.
Co-founder Jack Dorsey said in a statement to shareholders and employees that the decision reflects structural changes driven by artificial intelligence and the company’s long-term strategy.
“Today, we are making one of the most difficult decisions in our company’s history,” he wrote, adding that the move to smaller, flatter teams supported by AI tools is fundamentally changing the way businesses are built and run. “The tools we are building allow us to do more and do it better, even with significantly smaller teams, and the capabilities of our intelligence tools are rapidly improving every week,” Dorsey said.
He stressed that the cuts were not linked to financial difficulties. “Our business is strong and our gross profit continues to grow,” he said, calling the decision a proactive step to adapt quickly rather than gradually implementing layoffs over time.
we are making @block Today it’s smaller. Here are my notes to the company.
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Today, we are making one of the most difficult decisions in our company’s history. Cut the organization in half from more than 10,000 people to just under 6,000 people. So over 4,000 of you…
— Jack (@jack) February 26, 2026
Dorsey said the company chose to take “tough, clear action now” rather than “phasing in layoffs over months or years,” arguing that repeated cuts could damage morale and focus.
Affected employees will receive at least 20 weeks of pay, additional compensation based on tenure, vested stock through the end of May, six months of health insurance and a $5,000 transition fee, according to the statement.
The announcement comes amid a growing wave of layoffs across the technology sector as companies integrate AI into their operations.
Earlier, Kazinform reported that Australian software company WiseTech Global and other tech companies also announced job cuts related to AI implementation.
