Tech entrepreneur and Twitter co-founder Jack Dorsey has stated he is going to cut more than 40,000 jobs at Block, which will reduce the payments company’s workforce by nearly half.
He wrote on X stating, “Today we’re making one of the hardest decisions in the history of our company,” he further said that “We’re reducing our organization by nearly half, from over 10,000 people to just under 6,000.”
Jack co-founded popular microblogging platform Twitter and Block, saying that he has two choices “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.”
He said that the reason behind the layoff is not financial issues he wrote that “We’re not making this decision because we’re in trouble. Our business is strong. Gross profit continues to grow and profitability is improving,”
Jack argued that structural shift driven by intelligence tools and flatter teams is the major reason behind the massive layoff.
He said, “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,”
He also stated the reason behind layoff in single phase, he explains that this will impact on morale and trust, he said “I’d rather take a hard, clear action now and build from a position we believe in than manage a slow reduction of people toward the same outcome.”
we’re making @blocks smaller today. here’s my note to the company.
####
today we’re making one of the hardest decisions in the history of our company: we’re reducing our organization by nearly half, from over 10,000 people to just under 6,000. that means over 4,000 of you are…
— jack (@jack) February 26, 2026
Compensation to effected employees
The fired workforce will receive 20 weeks of salary and an additional week per year of tenure; equity vested through the end of May, six months of health coverage, their corporate devices and $55,000 to help them in transition. International packages will vary from region to region.
Jack said that everyone will be notified the same day either they are leaving or staying with the company.
He wrote that “We’re not going to just disappear people from Slack and email and pretend they were never here.” Communication channels will be open till Thursday evening so the colleagues can say goodbye.
Message for employees staying further
The employees who will be working with the company further has been directed by Jack that “I made this decision, and I’ll own it. What I’m asking of you is to build with me.”
He further told that the company will be rebuilt “with intelligence at the core of everything we do — how we work, how we create, how we serve our customers.”
He indicates that the company will push toward tools that allow businesses to build features directly using Block’s capabilities. He also admitted the risks. He said “A decision at this scale carries risk. But so does standing still.”
Syed Ziyauddin is a media and international relations enthusiast with a strong academic and professional foundation. He holds a Bachelor’s degree in Mass Media from Jamia Millia Islamia and a Master’s in International Relations (West Asia) from the same institution.
He has work with organizations like ANN Media, TV9 Bharatvarsh, NDTV and Centre for Discourse, Fusion, and Analysis (CDFA) his core interest includes Tech, Auto and global affairs.
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