Tech layoffs 2026: Jack Dorsey-led Block cuts over 4,000 jobs, affected employees to get 20 weeks of salary

Block, an American financial services provider for consumers and merchants, founded by former Twitter co-founder Jack Dorsey, cut more than 4,000 jobs. Confirming the development, Dorsey wrote on X that he is reducing the manpower massively. 

“We’re reducing our organisation by nearly half, from over 10,000 people to just under 6,000," he wrote. Detailing the two choices he had, Dorsey said, “I had two options: cut gradually over months or years as this shift plays out, or be honest about where we are and act on it now. I chose the latter.”

Why was the decision taken?

Dorsey said that the layoffs were not done due to financial weakness, adding that the business is strong with growing gross profit and improving profitability. 

Pointing at a structural shift, Dorsey wrote, "We're already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company. And that's accelerating rapidly."

What will employees get? 

In his post, Jack Dorsey mentioned that affected employees would receive 20 weeks of salary and an additional week per year of tenure, equity vested through the end of May, 6 months of health coverage, their corporate devices, and $5,000 to support their transition. 

International packages will vary on a country-by-country basis. He added that everyone affected would be notified on the same day. 

"We're not going to just disappear people from slack and email and pretend they were never here. communication channels will stay open through Thursday evening (Pacific) so everyone can say goodbye properly, and share whatever you wish. I'll also be hosting a live video session to thank everyone at 3:35 pm pacific," he added. 

He added that he would want the situation to feel awkward and human instead of efficient and cold. 

What about those who stay? 

For those staying in the company, Dorsey was absolutely blunt. "I made this decision, and I'll own it. What I'm asking of you is to build with me. We're going to build this company with intelligence at the core of everything we do - how we work, how we create, how we serve our customers." 

He added that the customers will feel this shift as well, and the team at Block will help them head towards a future where they can build their own features directly, composed of Block's capabilities and served through its interfaces. 

Is Block the only one?

No, Block is not the only one. US tech companies, including Amazon and Meta, have also laid off employees in droves due to an AI-driven overhaul. 

• Amazon: On January 28, the retail giant finalised 16,000 corporate layoffs. Leadership indicated that more cuts could follow as the company prioritises an AI-driven overhaul.
• Autodesk: Moving to bolster its cloud and AI initiatives, the software firm announced on January 22 that it would eliminate 7% of its staff (approximately 1,000 roles).
• HP: To streamline its global business, HP projected last November that it would phase out between 4,000 and 6,000 positions through fiscal 2028 as it integrates AI.
• Meta: Mark Zuckerberg’s firm is aggressively reallocating talent. Bloomberg reported on January 13 that over 1,000 jobs were cut at Reality Labs to shift focus from the Metaverse to AI hardware. This follows an October announcement of roughly 600 cuts within its Superintelligence Labs.
• Pinterest: In a bid to prioritise AI strategy and hiring, the platform announced in January that it would reduce its total headcount by up to 15%.