Block CFO: AI-Driven Workforce Reductions are “Inescapable” for Modern Corporations

Financial leaders are sounding a stark alarm for the global workforce: deep job cuts fueled by artificial intelligence are no longer a possibility, but an inevitability. Speaking at the WSJ CFO Council Summit on Tuesday, Block’s Chief Financial Officer and Chief Operating Officer, Amrita Ahuja, characterized the shift as an accelerating force that every business must eventually confront.

The discussion comes in the wake of Block’s recent decision to slash its workforce by 40%, a move that resulted in over 4,000 layoffs. The owner of Square and Cash App has now become the primary case study for a debate currently sweeping through American boardrooms: how aggressively should human staff be replaced as AI models achieve unprecedented productivity gains?

The Efficiency Gap: $2 Million Per Employee
The financial justification for these cuts is reflected in Block’s skyrocketing productivity metrics. Ahuja revealed that following the layoffs, the company expects to generate $2 million in gross profit per employee this year.

To put that figure in perspective:

2024: $750,000 per employee

2025: $1,000,000 per employee

2026 (Projected): $2,000,000 per employee

Industry Average: ~$500,000 per employee

By reaching $2 million, Block is operating at four times the efficiency of its competitors and the broader tech sector. Ahuja noted that other companies are already reaching out to learn how Block built the “confidence” to execute such a drastic reduction and how they integrated AI into their core operations.

Reinvesting in an AI-Native Future
According to Block Chairman and Co-founder Jack Dorsey, the primary catalyst for the layoffs was the rapid improvement of AI models. This technological leap has directly impacted “developer velocity”—the speed and efficiency of creating high-quality software—which surged by more than 40% between September 2025 and February 2026.

The capital saved from reducing human headcount is being redirected. Block is funneling those funds back into AI infrastructure, token costs, and the hiring of “AI-native” employees who are built to work alongside these new systems. “As a CFO, I think it’s better to be a little bit early than to be too late here,” Ahuja remarked regarding the decision to move first.

The Warning to the “Stubborn Middle”
The sentiment at the summit suggests that the pressure to adapt is not limited to entry-level roles. Gina Mastantuono, CFO of ServiceNow, echoed the necessity of this transition during an interview at the event. While she expressed optimism that most workers would eventually lean into the technology, she issued a blunt warning for those who do not.

“If you have a stubborn middle that’s refusing to learn how to 10X their efficiencies and productivity, they’re probably going to have to go.”
— Gina Mastantuono, CFO, ServiceNow

As companies prioritize workers who can leverage AI to multiply their output, the traditional corporate structure is being fundamentally rewritten. For Block and its peers, the goal is no longer just to grow, but to grow with a leaner, tech-augmented workforce that sets an entirely new standard for profitability.