Block, the fintech behind Afterpay and Square, is cutting roughly 4,000 jobs, nearly 40% of its workforce. The company is dropping from over 10,000 employees to under 6,000.
CEO Jack Dorsey says AI tools are enabling smaller, flatter teams. This is not a cost-cutting move. Block just posted 24% gross profit growth to $2.87 billion and raised 2026 guidance. Shares jumped 23% in the US after the announcement.
The severance package: 20 weeks' salary plus one week per year of tenure, equity vested through May, six months' health coverage, corporate devices, and $5,000 transition support. Dorsey framed this as getting ahead of an industry-wide shift, not reacting to financial pressure.
What This Means for Sales Teams
Block has not detailed which teams are hit hardest, but the company's sales org supports its merchant ecosystem through Square. The Afterpay acquisition brought significant ANZ headcount, centred in Sydney and Melbourne, with merchant-facing roles driving retail adoption.
The AI angle matters here. Dorsey claims intelligence tools are making these cuts possible, not just desirable. If a profitable, growing company can operate with 40% fewer people because of AI, that logic will reach sales orgs everywhere.
Entry-level roles, particularly SDR and BDR positions, are most exposed. These are the roles where AI-powered outbound tools, lead qualification bots, and automated prospecting are already gaining traction. Block's move gives air cover to other companies considering similar cuts.
Worth noting: Dorsey expects most businesses to make similar changes within a year. That is not speculation. That is the CEO of a major fintech saying the playbook is shifting.
The ANZ Context
Afterpay brought Block a strong ANZ merchant sales presence. The company has not specified local headcount impacts, but its Sydney and Melbourne offices house merchant-focused teams. Any restructuring will likely touch those orgs.
For sales professionals in ANZ tech, this is a signal. Companies are watching Block's share price reaction. If the market rewards aggressive AI-driven headcount reduction at a profitable company, expect more of it.
The question is not whether AI will impact sales roles. It is which roles get automated first and how fast. Block just made that timeline shorter.