Block Cuts 4,000 Jobs: AI Replaces Employees

On February 27, 2026, fintech giant Block (Jack Dorsey) announced the cut of over 4,000 employees. This is almost 10% of the workforce, and the company explicitly states: the restructuring is tied to the deep integration of AI into its operating model.

The event has become a "moment of truth" for the labor market. While previously corporations spoke of AI as an "assistant," Block is openly using it as a replacement for human labor in back-office, support, and primary data analytics. Jack Dorsey argues that AI agents handle routine tasks more efficiently and cheaply, allowing the company to maintain profitability without a bloated staff. This is a clear signal to the entire IT industry: the era of unlimited hiring is over; the era of human intelligence automation is beginning.

Source: Reuters