Jack Dorsey sounds layoff alarm after Block slashes 50% staff — which companies could be next?

Tech layoffs 2026: For thousands of white-collar workers, the future suddenly feels less certain. Jack Dorsey announced that Block, the parent company of Square and Cash App, will cut nearly half of its workforce, reducing its headcount from more than 10,000 employees to just under 6,000. That means more than 4,000 people are losing their jobs, even as Dorsey says the business itself is strong and profits are growing.

Why is Block Cuting Over 4,000 Jobs At Once Instead of Multiple Rounds of Layoffs

In a post on X, Dorsey explained that he chose one sweeping round of layoffs rather than multiple smaller cuts over time. Repeated layoffs, he wrote, are “destructive to morale,” focus, and trust among customers and shareholders. Instead of stretching the uncertainty over months or years, he said he would rather take “a hard, clear action now” and rebuild from there.

Full Breakdown of Block’s Severance Package

The severance packages are described as relatively generous. Affected employees will receive 20 weeks of base pay, plus an additional week for each year they worked at the company, as per a Business Insider report. Their equity will continue vesting through the end of May, they will receive six months of health coverage, be allowed to keep their corporate devices, and get a $5,000 payment.


The scale of the cuts stands out in an industry that has often relied on repeated rounds of layoffs. Management experts say those staggered reductions can create “layoff fatigue and chronic anxiety,” hurting morale and productivity, as per the Business Insider report.

Tech Industry Layoffs: A Growing AI-Driven Trend

Dorsey framed the decision as part of a broader shift driven by artificial intelligence. He said intelligence tools, combined with smaller and flatter teams, are enabling “a new way of working” that changes what it means to build and run a company. On Block’s earnings call, he predicted that within the next year, most companies will reach the same conclusion and make similar structural changes.

The announcement comes at a time when fears about AI and white-collar job losses are already rising. A recent scenario from Citrini Research warned that AI could sharply increase unemployment, unsettling investors and circulating widely on social media. Though described as a scenario rather than a prediction, it gained renewed attention after Block’s layoffs.

Other tech leaders have voiced similar concerns. Dario Amodei has warned of a looming white-collar “bloodbath,” and Mark Zuckerberg has said AI is reshaping what individual employees can accomplish. At Klarna, CEO Sebastian Siemiatkowski said the company’s workforce has already halved and is expected to shrink further by 2030.

Other companies, including Pinterest, CrowdStrike, Chegg, Salesforce, and Ford Motor Company, have also linked layoffs or workforce changes to AI-driven efficiency.

Not everyone agrees that AI alone is to blame. Some observers argue that companies may have overhired during boom times and are now adjusting.

Also read: Employee leaves stable Big Four job for startup, regrets it after 3 months — what people told him

What Fed Chair Jerome Powell Said About AI and Hiring

Policymakers are paying attention. Federal Reserve Chair Jerome Powell said many companies mention AI when announcing hiring freezes or layoffs, though those effects are not yet clearly visible in jobless claims data, as per a USA Today report.

World Economic Forum Forecast: Jobs Lost vs. Jobs Created by 2030

The longer-term outlook remains uncertain. The World Economic Forum estimates that 92 million jobs could be displaced by 2030, but also projects that 170 million new roles could be created in the same period.

FAQs

How many jobs is Block cutting?
More than 4,000 roles are being eliminated, reducing the workforce to under 6,000 employees.

Are other tech leaders worried about AI and jobs?
Yes. Several executives have publicly warned about AI reshaping the workforce.