Jack Dorsey Emulates Elon Musk with Block Layoffs
Jack Dorsey, the founder of Block, which operates Square, Cash App, and Tidal, has made a bold move by announcing the layoffs of over 4,000 employees, nearly half of its global workforce. This decision has drawn comparisons to Elon Musk’s drastic staff cuts at Twitter after taking the company private.
Investors responded positively to Dorsey’s announcement, with Block’s stock surging more than 24% in after-hours trading. This strategic move is reminiscent of Musk’s approach to streamlining operations and maximizing efficiency.
Having closely observed Musk’s actions during the Twitter takeover, Dorsey made a significant investment in X, the rebranded company. Their relationship has been characterized by mutual admiration, public disagreements, and shared interests in technologies like Bitcoin and decentralization.
Dorsey justified the layoffs as a proactive measure driven by the need to leverage AI for automation and efficiency. He emphasized the importance of making tough decisions now to position Block for future success, rather than waiting for financial pressures to dictate the company’s trajectory.
Similar to Salesforce and Amazon, Block’s workforce reductions are part of a broader trend in the tech industry towards embracing AI and streamlining operations. However, questions remain about the true impact of these layoffs on employees and the overall effectiveness of AI-driven strategies.
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