Jack Dorsey just caused a stir by laying off over 4,000 employees – nearly half the company – in a single cutback. Notably, instead of collapsing, Block, Inc.'s stock surged 22%.

Block – the company behind Cash App, Square, and Afterpay – announced this was the largest “AI-driven” layoff in corporate history. The workforce was cut from 10,000 to under 6,000 employees, even though the company remains profitable and revenue is growing.
Dorsey emphasized that this is not a sign of crisis but a strategic choice. According to him, AI tools have changed how businesses are built and operated. A smaller team, effectively using AI, can do more and better. In other words: AI has enough capacity to replace many positions.
Block aims for a 54% profit increase in 2026, with an expected EPS of $3.66 ( surpassing the forecast of $3.22 ), and gross profit up 18%. The formula is very clear: fewer employees, higher profit margins.
Inside the company, AI has been deeply integrated. Employees are required to use AI daily, and AI proficiency is included in performance evaluations. The internal platform “Goose” helped engineers increase their code output by 40% in just 6 months.
The message from the market is very clear: Wall Street welcomes the “fewer people – more AI” model. This could become a blueprint for many other companies. The question is no longer whether AI will replace jobs, but how quickly it will happen.