Jack Dorsey’s Block Slashes 4,000 Jobs to Lead 'AI-First' Overhaul; Stock Jumps 24% on New Efficiency Play

Shares of Block, Inc. surged more than 24% in extended trading after the fintech firm confirmed plans to eliminate over 4,000 roles, representing roughly 40% of its workforce. The restructuring was announced by CEO Jack Dorsey, who positioned the move as a strategic overhaul that is aimed at aligning the company with AI-driven operations rather than a liquidity-driven cost-cutting exercise.

In after-hours trade, the stock briefly climbed as much as 27%, marking one of its strongest single-session reactions in recent years.

Scale of Layoffs and Financial Snapshot

Block said its headcount would decline from just over 10,000 employees to under 6,000, a reduction of more than 4,000 jobs globally.

The announcement accompanied its fourth-quarter results, where the company reported:

• Adjusted EPS: $0.65
• Revenue: $6.25 billion

Management also provided an upbeat longer-term outlook, projecting approximately $12.2 billion in gross profit for 2026, along with adjusted earnings per share of $3.66.

The updated guidance, combined with the aggressive cost rationalisation, appears to have reassured investors about operating leverage and margin expansion potential.

Why Markets Reacted So Strongly?

The rally shows a shift in investor sentiment toward companies embracing AI-led restructuring. Markets are increasingly rewarding firms that demonstrate the ability to protect margins and boost productivity through automation.

Block’s move shows a pivot toward leaner teams and heavier integration of AI tools across its ecosystem, which includes payments and peer-to-peer platforms. Investors appear to be pricing in improved efficiency metrics and a stronger profitability trajectory over the next several quarters. While workforce reductions of this scale often trigger concerns about growth continuity, the market reaction suggests shareholders are prioritising margin discipline and forward earnings visibility.

The development comes amid a broader trend among technology firms to recalibrate workforce structures as AI adoption accelerates. Across the sector, companies are reassessing hiring strategies, flattening organisational hierarchies, and automating operational layers to improve cost structures.

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