Block, the payments company that operates Square, Cash App, and Tidal, announced Thursday it is cutting over 4,000 jobs, roughly half of its workforce, while its stock surged up to 24 per cent in after-hours trading.

“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 reducing Block by nearly 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.”

Block’s shares rose nearly 18 per cent in premarket trading Friday.

Dorsey said he anticipates other companies will also restructure their workforces as they realize efficiency gains from “intelligence tools.”

“Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes,” Dorsey said. “I’d rather get there honestly and on our own terms than be forced into it reactively.”

Other companies, including Pinterest, CrowdStrike, and Chegg, have recently announced layoffs, citing AI-driven changes to their workforces.

In an X post, Dorsey said he faced the choice of cutting staff gradually over months or years “as this shift plays out,” or to “act on it now.”

“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, founded by Dorsey reported having 10,205 employees globally as of December 31, 2025, according to its annual filing.