Block's Hiring Freeze Puts AI Engineers in the Driver's Seat

In a stark internal memo, Block CEO Jack Dorsey has informed employees that the company will not increase its total headcount through the end of 2026. The policy, a significant extension of cost-cutting efforts begun in 2024, imposes a near-total hiring freeze with one major exception: senior artificial intelligence engineers are still being actively recruited.

The directive means most departing employees will not be replaced, with their roles potentially being eliminated or converted to AI-focused positions. For Block’s approximately 12,000 workers, the message is clear: the company’s future hinges on automating tasks and building new products with machine intelligence, not on expanding its human workforce.

This explicit trade-off reflects Dorsey’s long-standing belief in small, agile teams and a broader industry shift. While other tech giants have also cut jobs while investing in AI, Block is unusual in directly linking the two, stating that AI will fill the gap left by a static headcount. Internally, reactions are split. Some see a necessary, transparent strategy; others fear increased burnout as teams shrink and reliance on evolving AI tools grows.

Financially, the move aims to satisfy Wall Street’s demand for disciplined spending while betting that automation will boost future profits. Block has already integrated AI into fraud detection, lending decisions, and customer service across its Square and Cash App platforms. The engineers it now seeks are tasked with deepening those capabilities and building new ones, potentially in areas like Bitcoin products, where Dorsey has a keen interest.

The gamble is substantial. If AI delivers on its promise, Block could operate with unprecedented efficiency. If it falls short, the company risks eroding morale, losing valuable experience, and ceding ground to rivals. For now, Dorsey is steering Block toward a future run by fewer people and more algorithms, a vision that will define the company in the years to come.