Block, Inc., the parent company of Square and Cash App, announced plans to lay off about 40 per cent of its workforce, with CEO Jack Dorsey citing artificial intelligence as a key reason. In a public letter, Dorsey said AI tools and leaner teams are reshaping how companies operate, allowing Block to reduce headcount despite strong financial results. Shares rose following the announcement, and the company reported a 24 per cent jump in quarterly gross profit.

However, some analysts question whether AI alone justifies such deep cuts. Industry observers note that many tech firms, including Block, expanded rapidly during the pandemic, only to scale back later. Similar workforce reductions have occurred at major global tech companies as they reallocate resources toward AI development.

For Canada, where Block operates but has not disclosed local layoff figures, the move reflects broader uncertainty in the tech job market. While large firms are trimming roles, demand remains strong among mid-sized companies across industries investing in digital tools and AI, suggesting a shift — rather than a collapse — in tech employment opportunities.

Have you been laid off at Block in Canada? Contact our employment lawyers today. Our legal team may offer a free case assessment and works on a contingency basis —there are no fees unless you win your case.

Abby Hughes’ original article, “Block lays off 4,000 workers citing AI. But how much does AI actually have to do with it?” was published in CBC News on February 28, 2026. Read the Full CBC News story.

We cannot assist unionized employees, and if you are a member of a union, you should speak to your union representative before consulting with a disability lawyer about your workplace issue.