Overview
- CEO Jack Dorsey said headcount will drop from over 10,000 to just under 6,000 because internal AI tools let smaller teams accomplish more.
- Employees were told the same day of their status, with some losing access to internal systems that night, and severance includes 20 weeks' pay plus a week per year of service, three months of monthly equity, six months of health coverage, device retention, and a $5,000 payment for U.S. staff.
- Block forecast first-quarter gross profit of $2.80 billion, up 22% year over year.
- The stock gained more than 20% in after-hours trading following the announcement.
- Evercore ISI described the move as a pivotal AI signal for corporate staffing, and Dorsey predicted many firms may adopt similar changes within a year.