Jack Dorsey’s Block is cutting jobs again. Here’s what makes these layoffs different

Jack Dorsey's fintech firm, Block, has initiated a second wave of layoffs, following a round of job cuts in February. The company has not disclosed the exact number of employees affected. These latest layoffs impact teams within Cash App and Square, Block's consumer financial services and seller tools, respectively. According to Business Insider, the affected teams will reduce roles, modify responsibilities, and adjust reporting structures.

Laid-off staff are entitled to a "separation package and transition assistance," similar to those impacted in February 2026. The compensation package for the February layoffs included 20 weeks of severance or more, proportional to tenure, vested equity up to May 31, six months of healthcare coverage, corporate devices, and an additional $5,000.

Block has not revealed the specifics of the new severance terms. The layoffs coincided with Block's release of its third-quarter results on Tuesday. The company raised its 2026 gross profit forecast to $12.63 billion, up from the initial estimate of $12.51 billion. Block also projected fourth-quarter gross profit of $3.32 billion.

However, the company has not provided an explanation for this round of layoffs. In February, Dorsey highlighted that the February job cuts were not due to financial struggles but rather to enhance "intelligence tools," such as AI. He stated that a smaller team, leveraging AI tools, can achieve more and perform better. "Intelligence tool capabilities are accelerating rapidly every week," Dorsey wrote on X. Block is also expanding its AI product portfolio.

The company recently launched Dessa, a speech-to-speech AI voice model trained on real human conversations. The creators see voice as the most natural interface with intelligence, hence Dessa, a highly authentic full-duplex speech model.