Jack Dorsey’s fintech company Block has started a second round of layoffs in 2026, affecting teams that support Cash App and Square. The cuts began on Wednesday, months after the company eliminated more than 4,000 jobs in February, and Block has not said how many employees are affected this time.
| Detail | Status |
|---|---|
| Who is affected | Customer Ops, Risk Ops, and Learning & Content Operations teams supporting Cash App and Square |
| How many | Not disclosed |
| Severance | Described as a “separation package and transition support, similar to” February’s, with new terms not detailed |
| Official reason | Not explained by Block Jack Dorsey’s Block is cutting jobs again. |
Which teams are being cut?
According to Business Insider, the affected teams will see fewer roles, some changed responsibilities and shifted reporting lines. These are operations functions: the people who handle customer support, manage risk and fraud work, and produce learning content for Block’s two main products.
What did February’s package include?
Block hasn’t confirmed whether the same terms apply now. In February, laid-off employees received 20 weeks of severance or more depending on tenure, equity vesting through the end of May, six months of healthcare, their corporate devices and an extra $5,000.
The timing: strong results, then layoffs
The new round came right after Block’s earnings. Block reported third-quarter results on Tuesday and raised its 2026 gross profit forecast to $12.63 billion from $12.51 billion, with fourth-quarter gross profit projected at $3.32 billion. That makes these cuts look like a strategy choice rather than a response to financial trouble, which is how Dorsey described the February round.
Why is Block cutting jobs? The AI link
Block hasn’t said what drove this round. The company’s earlier explanation points to AI, though. In February, Dorsey said the cuts were due to “intelligence tools” like AI rather than financial problems, arguing that a much smaller team using Block’s tools can do more. CFO Amrita Ahuja said the company sees a chance to move faster with smaller teams using AI to automate more work.
A quick recap of February
In February, Block said it would cut almost half its workforce, taking headcount from more than 10,000 to below 6,000. Investors reacted positively, with the share price up more than 24% in after-hours trading. Block estimated the February restructuring would cost between $450 million and $500 million, mostly severance and related costs.
Why it matters
- For the industry: Dorsey said he expects other companies to make similar structural changes within a year.
- For debate on AI and jobs: Some observers believe AI is being used as a scapegoat in several of the recent mass layoffs. Block’s profitable quarter makes it a closely watched example either way.
- For Block’s product bets: The company recently released Dessa, a speech-to-speech AI voice model. It is cutting operations teams while investing in its own AI products.
Frequently Asked Questions
Yes. Block began a second round of layoffs this week, after cutting more than 4,000 jobs in February.
Block hasn’t said. Reports so far name the affected teams but not a number.
Customer Ops, Risk Ops, and Learning & Content Operations teams supporting Cash App and Square.
Not by its latest numbers. It raised its 2026 gross profit forecast the day before the layoffs began.
The company hasn’t explained this round. Dorsey tied February’s cuts to AI-driven productivity, not financial pressure.
