Afterpay’s Owner Block to Slash Nearly Half Its Workforce, Citing AI
The Sydney Morning Herald
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Details
- Date Published
- 27 Feb 2026
- Priority Score
- 2
- Australian
- Yes
- Created
- 27 Feb 2026, 12:30 am
Description
The cuts reduce Block’s global workforce from more than 10,000 employees to just under 6000, making it one of the largest AI-driven job culls to date.
Summary
Block, owner of the buy-now-pay-later service Afterpay, announced a significant reduction in its workforce, cutting more than 4,000 jobs worldwide. This decision marks one of the largest AI-driven job reductions to date, indicating a strategic shift towards becoming an intelligence-native business. The cuts underscore the broader trend of AI's impact on global employment and productivity. While the implications for AI safety are limited, this development highlights AI's transformative role in business operations and its potential socioeconomic consequences. The article has relevance to Australian interests given Afterpay's origins and Block's presence in the region.
Body
AdvertisementJack Dorsey’s payments giant Block will slash more than 4000 jobs – nearly half its global workforce – in what the company described as a deliberate pivot to becoming an “intelligence-native” business, sending shares surging more than 22 per cent in after-hours trading.The cuts reduce Block’s global workforce from more than 10,000 employees to just under 6000, making it one of the largest AI-driven workforce reductions to date.US-based Block, led by Jack Dorsey, is the latest technology company to announce mass lay-offs, citing AI.BloombergBlock, which acquired Melbourne-founded buy-now-pay-later platform Afterpay for about $39 billion in 2022, has a significant presence in Australia, though the precise number of local employees affected remains unclear.It comes after Australian tech outfit WiseTech Global this week cut 2000 roles – roughly a third of its workforce – citing AI-driven productivity gains, with chief executive Zubin Appoo pointing to advancements in models from Anthropic and OpenAI as a tipping point.AdvertisementAustralian employees of Block are not immune from the cuts, though the company did not say how many local staff would lose their jobs.Dorsey told shareholders that repeated rounds of smaller lay-offs would be more damaging than acting decisively.“A significantly smaller team, using [AI] tools, can do more and do it better,” he said in a letter to shareholders. “I don’t think we’re early to this realisation. I think most companies are late.”The company reported adjusted earnings of 65 cents per share for Q4, with gross profit up 24 per cent year-on-year to $US2.87 billion. Block’s shares surged more than 25 per cent in extended trading after the announcement.The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.SaveYou have reached your maximum number of saved items.Remove items from your saved list to add more.ShareLicense this articleMore:JobsJack DorseyBlock Inc.AIDavid Swan is the technology editor for The Age and The Sydney Morning Herald. He was previously technology editor for The Australian newspaper.Connect via X or email.AdvertisementAdvertisement