Block's AI-driven layoffs boost profits and EPS, setting a trend for tech firms to follow.

Block cut its workforce by over 4,000 in early 2026, yet posted a 51.8% growth in Q1 adjusted EPS and raised its full-year guidance by 62%. CEO Jack Dorsey credits AI tools, used by all employees, for enabling a smaller team to increase productivity and profitability. This move highlights a growing trend where tech companies must adopt AI-driven efficiency to stay competitive, as seen with similar layoffs at Cloudflare and Coinbase. The key question now is whether these AI productivity gains will be sustainable long-term, potentially reshaping labor models across the tech industry.