Jack Dorsey's Block makes second round of job cuts this year

Jack Dorsey cited AI as a factor in Block's February layoffs. Greg Nash/The Hill/Bloomberg via Getty Images Block is cutting jobs for the second time this year, days after reporting better-than-expected earnings. The cuts affected employees in its Cash App businesses, Business Insider has learned. Earlier this year, Block laid off more than 40% of employees, and cited AI as one of the reasons. Block is cutting jobs for the second time this year. The fintech company, led by Jack Dorsey, informed some employees on Wednesday that their roles are being eliminated, according to an email seen by Business Insider. Two people familiar with the matter said the cuts affected Cash App, Block's consumer financial services app. Some employees at Square, its seller-services business, wrote on social media that they had been let go. The total number of employees affected could not immediately be learned. The email to staff said that Customer Ops, Risk Ops, and Learning & Content Operations teams would be affected by changes that include "reducing the number of roles, changing some responsibilities, and shifting some reporting lines." Some staff would leave the company, while others would enter a consultation, the email said. Affected employees would receive a "separation package and transition support, similar to those affected in February 2026." Block declined to comment. In its February layoffs, Block said it would reduce its workforce by more than 40%, from over 10,000 employees to just under 6,000. Dorsey said the company was not in financial trouble, but that AI and other "intelligence tools" had fundamentally changed what it means to operate a business. Have a tip? Contact Alice via email at atecotzky@insider.com or Signal at alicetecotzky.05. Contact Shuby at sgoel@insider.com or Signal at shuby.85. Use a personal email address and a nonwork device; here's our guide to sharing information securely. Block later said it expected the restructuring to generate $800 million to $900 million in annualized net cost savings. While the email about the newest cuts did not mention AI, it referenced "using better tools to handle routine tasks" and "refocusing our teams' time on complex cases and decisions." The cuts come days after Block reported better-than-expected third-quarter results. The company said gross profit rose 22% year over year to $3.24 billion, led by growth at both Square and Cash App. Block also raised its full-year outlook, forecasting $12.6 billion in gross profit for 2026. This year, the company has been pushing to streamline operations and improve efficiency. Dorsey has pushed Block to consolidate teams and make more use of AI tools, arguing that the technology is changing how companies are built and run. Block's layoffs earlier this year were among the most dramatic in tech and came in a wave of companies — including Snap, Atlassian, and Coinbase — that cited AI as a factor for their cuts. Other Big Tech companies, including Amazon, Oracle, Meta, and Microsoft, have all announced significant workforce reductions this year. Companies have cited a range of reasons, including cost discipline, reorganizations, slower-growth businesses, and a desire to shift resources toward AI. Block's stock price is down 4% today. It's up nearly 15% over the past year but well below its 2021 highs. Read the original article on Business Insider