On February 26, 2026, Jack Dorsey, co-founder and CEO of Block Inc., posted a concise message on X: “we’re making @blocks smaller today. here’s my note to the company.”
In the attached letter, Dorsey announced one of the largest single-day workforce reductions in recent tech history: Block would shrink from more than 10,000 employees to just under 6,000, eliminating over 4,000 positions—nearly half the company. As of December 31, 2025, Block reported 10,205 full-time employees worldwide.
The move came despite a strong 2025. Full-year gross profit reached $10.36 billion, up 17% from the prior year. Cash App gross profit grew 21% to $6.34 billion, while Square’s rose 9% to $3.94 billion. Adjusted operating income hit $2.08 billion (20% margin), and the company surpassed its Rule of 40 benchmark in Q4. Revenue had climbed from $24.12 billion in 2024 to support continued expansion across payments, lending, and bitcoin initiatives.
Yet Dorsey made clear the decision was not driven by weakness. “Intelligence tools have changed what it means to build and run a company,” he wrote. “A significantly smaller team using the tools we’re creating and using, paired with smaller and flatter teams, can do more and do it better—and that’s accelerating rapidly.”
Block’s journey began on February 14, 2009, when Dorsey and Jim McKelvey founded Square in a San Francisco apartment. The original product—a simple white card reader that plugged into a smartphone—democratized credit-card acceptance for small businesses and street vendors. By 2011, Square processed $2 billion annually. It went public in November 2015 at a $2.9 billion valuation after raising billions privately.
Employee headcount grew explosively with success. From roughly 1,300 in 2014, the company swelled past 5,500 by 2020 and peaked near 13,000 in 2023 after acquiring Afterpay for $29 billion in 2022 and taking a majority stake in Tidal. Cash App, launched in 2013, now serves 59 million monthly transacting users. Square powers point-of-sale systems for millions of sellers. The 2021 rebrand to Block reflected a broader ecosystem vision: payments, banking, commerce tools, music streaming, and bitcoin infrastructure.
Previous trimming occurred—931 jobs cut in March 2025 and an 8% reduction announced in late 2023—but nothing approached this scale. Dorsey rejected repeated small layoffs, which he called “destructive to morale.” Instead, Block chose one decisive reset.
Severance is generous by industry standards: 20 weeks’ salary plus one week per year of tenure, full equity vesting through May 2026, six months of healthcare, company devices, and $5,000 in transition cash (with local equivalents outside the U.S.). Slack channels remained open for goodbyes, and Dorsey hosted a live thank-you session.
Investors applauded. Block shares surged 24-27% in after-hours trading as the market priced in higher future margins and AI-driven efficiency.
Looking ahead, Dorsey outlined a leaner, “intelligence-native” Block. Four focus areas—customer capabilities, interfaces, proactive intelligence, and operational models—will sit at the core. 2026 guidance calls for $12.20 billion in gross profit (18% growth) and $3.20 billion in adjusted operating income (26% margin). Dorsey believes most companies will soon follow suit.
From a 2009 garage startup to a 2026 AI-first fintech with under 6,000 employees, Block’s latest chapter shows how quickly the rules are changing. Dorsey’s bet is that smaller, smarter teams armed with rapidly improving tools will deliver more value to the millions of small businesses and individuals who rely on Square, Cash App, and Afterpay every day.