Inside the Rolling Layoffs at Jack Dorsey’s Block

Wired

by Reece Rogers

February 19, 2026

AI-Generated Deep Dive Summary

Inside the Rolling Layoffs at Block: Struggling with Morale and Performance Block, the parent company behind Square and Cash App, is facing significant challenges as hundreds of employees are laid off in a staggered process that could impact up to 10% of its workforce. Internal documents reveal declining morale, widespread performance anxiety, and growing frustration among remaining employees. Many feel uncertain about their futures, with layoffs being characterized by management as performance-related rather than cost-cutting measures. This approach has sparked criticism, particularly after engineering lead Arnaud Weber claimed the layoffs were based on merit during an email to staff. The company’s leadership, including CEO Jack Dorsey, has emphasized the need for employees to embrace generative AI tools to maintain productivity and stay competitive. However, this mandate has been met with skepticism, as many workers believe the tools are not effective enough to justify such a top-down approach. Employees have raised concerns about the tension between leveraging AI for faster delivery and maintaining code quality, highlighting a broader debate within tech companies about how much reliance on AI is feasible and productive. The situation at Block underscores larger trends in the tech industry, where workforce management, performance expectations, and the adoption of new technologies are increasingly intertwined. The company’s internal struggles highlight the challenges of balancing innovation with employee well-being, particularly during periods of significant change and uncertainty. As Block continues to navigate these issues, its ability to maintain a healthy culture and retain top talent will be critical to its long-term success.

Verticals

techscience

Originally published on Wired on 2/19/2026