Block’s AI reset signals new earnings phase after cutting 40% of workforce

Block Inc. just cut roughly 4,000 jobs. Shares jumped more than 16%. If that math feels emotionally confusing, welcome to the AI era of corporate restructuring, where headcount goes down and stock price goes up in perfect inverse harmony. The company formerly known as Square announced on February 26 that it would slash its workforce from over 10,000 employees to approximately 6,000, a reduction of about 40%. CEO Jack Dorsey framed the move not as a retreat but as an “AI reset,” positioning Block for what he described as a smaller, flatter operating model powered by artificial intelligence tools rather than human middle management. The AI tools replacing the humans Block isn’t just waving its hands and saying “AI” like a magic incantation. The company pointed to specific tools already in development or deployment. Square Managerbot is designed to deliver real-time insights and recommendations to sellers on the platform. For developers, there’s Builderbot, aimed at accelerating internal software development workflows. Dorsey emphasized that the restructuring should drive margin expansion, pointing to the company’s sustained financial strength and continued growth in gross profit as e...