Jack Dorsey’s Block, the financial tech company that runs Square and the Cash app, is cutting its workforce by “nearly half” and axing more than 4,000 jobs. The company will shrink from more than 10,000 people to less than 6,000, Dorsey says in a post on X. And the reason why? AI.

“We’re not making this decision because we’re in trouble,” Dorsey says. “Our business is strong. Gross profit continues to grow, we continue to serve more and more customers, and profitability is improving. But something has changed. We’re already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company. And that’s accelerating rapidly.”

Dorsey opted to do a big layoff instead of gradual cuts because “I’d rather take a hard, clear action now and build from a position we believe in than manage a slow reduction of people toward the same outcome.”

The layoffs were announced on Thursday as part of the company’s Q4 2025 earnings. In a shareholder letter, Dorsey says that “We believe Block will be significantly more valuable as a smaller, faster, intelligence-native company. Everything we do from here is in service of that.”