Twitter co-founder Jack Dorsey is cutting more than 4,000 jobs at Block

Twitter co-founder Jack Dorsey said his company, Block, will reduce its workforce by nearly 50%, lay off more than 4,000 employees and shrink the company from more than 10,000 employees to less than 6,000.

The company has fired employees because of AI tools that can make them useless.

AI-driven job layoffs continue

In a memo to employees, Dorsey called the move “one of the most difficult decisions” in the company’s history. He said that the layoffs were not the result of financial distress, explaining that gross profit is still growing and profitability is improving.

Rather, he cited rapid advances in intelligence tools and the trend toward smaller, more streamlined teams as a reason for the restructuring.

Affected employees will receive 20 weeks of pay plus one additional week for each year of service.

They will also receive shares that expire at the end of May, six months of health insurance coverage, company equipment, and $5,000 to support the transition. International conditions will vary according to local laws.

Dorsey said he chose to act immediately instead of making gradual cuts. He stressed that repeated series of layoffs damage morale and confidence.

Block, formerly known as Square, operates business payment systems and the peer-to-peer Cash App service.

Cash App allows users to buy and sell Bitcoin. The company also holds Bitcoin on its balance sheet and invests in Bitcoin infrastructure, including self-custody tools and mining initiatives.

Dorsey brought Block closer to the development of Bitcoin.

Previously, Dorsey co-founded Twitter in 2006 and served as CEO twice, stepping down in November 2021.

In October 2022, Elon Musk completed the acquisition of Twitter, then renamed X. Dorsey publicly supported the acquisition at the time.

The restructuring represents a major shift for Block as Dorsey moves to run the company with smaller teams and systems based on core intelligence.