Washington. Twitter co-founder Jack Dorsey’s company Blockchain Inc. has recently taken a big step and decided to fire more than 4,000 of its employees. After this news on Thursday, February 26, the company’s shares saw a huge jump of 25% on Wall Street. The company says the cuts will reduce its total workforce from 10,000 to about 6,000.
What did Dorsey say? ‘This decision is difficult, but necessary’
In a letter to shareholders, Jack Dorsey called the decision “extremely difficult.” According to the company’s CFO Amrita Ahuja, this move will prepare the company for the next phase of long-term growth. According to the data of December 2025, a total of 10,205 employees were employed in the block.
Affected employees will get this compensation package
Dorsey said separately on social media platform Additionally, they will also be provided equity until the end of May, six months of health insurance, company devices, and an additional $5,000 to help with the transition.
How much will it cost the company?
This entire campaign of layoffs will cost the block an additional amount of approximately $500 million. This mostly includes severance payments, employee benefits and some non-cash expenses, the impact of which will be visible in the financial results of the next quarter.
Increasing impact of AI: Is this the big reason?
Block’s co-CEO also clarified that this decision has not been taken because the company is in crisis. Dorsey wrote, “We are already seeing that the intelligence tools (AI) we create and use are enabling a new way of working together, with smaller teams. It is fundamentally changing what it means to build and run a company, and this change is happening fast.” He says that other companies can also make similar changes in their workforce because these AI tools are bringing increased efficiency for them.
Block joins the list of companies doing layoffs due to AI
Block, a financial services provider, has now joined the list of companies that have announced layoffs, citing changes in their workforce due to AI. Earlier, companies like Pinterest, CrowdStrike and Chegg have also joined this list. The company made this announcement along with its fourth quarter results, which were largely in line with expectations.
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