Block slashes 40% of workforce as AI-driven restructuring boosts profits

Block announced in February 2026 that it would cut more than 4,000 jobs, roughly 40% of its staff, to shift the company toward an AI‑centric operating model. CEO Jack Dorsey said the move would let smaller teams using AI tools outperform larger, pandemic‑era departments. The restructuring was accompanied by a $450‑$500 million charge in Q1 2026, but the company’s stock rose 20‑25% in after‑hours trading. In the fourth quarter, Block reported gross profit of $10.36 billion, up 17% year‑over‑year, with Cash App’s profit climbing 33%.

Six months later, Block’s second‑quarter results showed the AI overhaul delivering faster product development: code changes per engineer rose 150%, the firm shipped 130 new features—more than three times the prior year’s output—and product‑development expenses fell 17% year‑over‑year. The new internal AI platform, Buzz, is now offered publicly, while AI agents such as Moneybot and Managerbot are handling financial assistance and merchant operations. Cash App’s AI‑driven financial assistant logged over one million weekly engaged accounts, and overall cash‑app gross profit grew 31% year‑over‑year.