Block Inc. (the parent company of Square and Cash App) announced on Thursday, February 26, 2026, that it is laying off more than 4,000 employees, or about half of its headcount.
The company had a total of 10,205 employees worldwide as of December 31, 2025, according to its annual filing.
As a result of the workforce downsizing, Block expects to incur charges of approximately $450 million to $500 million, consisting primarily of severance payments, employee benefits and noncash expenses related to share vesting, according to a securities filing.
Laid-off employees are reportedly being offered a comprehensive transition package, including 20 weeks of salary plus 1 week for every year of tenure. The company will also provide a $5,000 one-time transition support payment and 6 months of health coverage.
“Today we shared a difficult decision with our team,” Jack Dorsey, Block’s co-founder and CEO, wrote in a letter to shareholders.
“We’re downsizing the Block Inc workforce by almost half, from over 10,000 people to just under 6,000, which means that over 4,000 people are being asked to leave or entering into consultation, added Jack Dorsey.
“I chose the latter,” Dorsey wrote. “Repeated rounds of cuts are destructive to morale, to focus, and to the trust that customers and shareholders place in our ability to lead.”
Block joins the race of other tech companies like Pinterest, CrowdStrike, and Chegg, which have recently announced job cuts and directly attributed the layoffs to Artificial intelligence (AI) reshaping their workforces.