Software company Block, the parent of Square, Afterpay and Cash App, has laid off 40 percent of its workforce, amounting to about 4,000 employees. The company attributed the decision to advances in artificial intelligence that it said reduced the need for human staff. Similar moves have been reported across the tech industry, with Atlassian, Meta, Amazon and WiseTech also announcing significant job cuts while citing AI-related efficiencies.

Inside Block, reactions to the layoffs have been divided. Some former employees doubt that AI alone justified the cuts, arguing that current tools cannot replace thousands of engineers with deep institutional knowledge. Others, including those who helped develop the company’s AI systems, believe the technology’s accelerating capabilities are indeed reshaping the workforce. Research from Model Evaluation and Threat Research (METR) found that while programmers using AI felt more productive, they actually completed tasks more slowly, suggesting a perception gap about AI’s effectiveness.

Executives such as Block’s Jack Dorsey have described a major leap in AI sophistication since late 2025, while critics accuse companies of using AI as a convenient cover for cost-cutting. Despite skepticism, investors responded positively, with Block’s share price rising 22 percent on the day of the layoffs.