Binance founder Changpeng Zhao (CZ) weighed in on the massive layoffs at Block Inc., the company formerly known as Square, with a blunt warning: "The reality is: maximize AI use, or you'll be fired." His comment quickly spread across crypto and tech circles.
Block cuts nearly half its workforce; Dorsey cites AI-driven transformation
On February 26, 2026, Block announced it would reduce its headcount from over 10,000 to fewer than 6,000 — a cut of roughly 50% affecting more than 4,000 employees. In an internal memo, CEO Jack Dorsey explained that despite strong financial performance and rising profits, AI tools combined with leaner, flatter teams have fundamentally changed how work gets done. He chose to make a sharp, one-time reduction rather than drag out the process, aiming to avoid prolonged low morale and uncertainty.
Market rallies: Block stock surges 20% on the news
Following the announcement, Block's share price jumped over 20% in a single day. Investors see the move as a clear signal of improved operational efficiency and future profitability. Analysts view it as a textbook case of corporate restructuring in the AI era — where AI is not just replacing some jobs but becoming a core productivity tool.
CZ reposted Dorsey's public letter on X (formerly Twitter) with his signature comment. He has long advocated for combining crypto with AI and urged his own teams to stay ahead of technological shifts.