Balaji Srinivasan Says Block Firings Will Send ‘Shockwaves,’ Angel Investor Says Jack Dorsey Is Signalling Everyone — xAI Makes Moves On Talent

On Thursday, Elon Musk’s xAI began recruiting shortly after Block Inc. (NYSE:XYZ) announced it would cut nearly half its workforce in a sweeping efficiency push tied to artificial intelligence.

Block Cuts 4,000 Jobs In AI Efficiency Overhaul

Block said it is reducing headcount from more than 10,000 employees to just under 6,000, eliminating over 4,000 roles as part of what CEO Jack Dorsey described as a difficult but necessary restructuring.

“Today we shared a difficult decision with our team,” Dorsey wrote in a letter to shareholders.

The company said affected employees will receive 20 weeks of pay, six months of health coverage and vested equity.

Investors Call It A Turning Point For AI And Tech Jobs

Following the announcement, Gene Munster, managing partner at Deepwater Asset Management, said the move underscores how quickly AI is reshaping corporate strategy.

“AI’s impact just hit a new gear,” Munster said, adding that the industry remains early in the transition. “We’re in the second inning.”

AI’s impact just hit a new gear. Block ($XYZ) is cutting 40% of its 10k-person headcount due to AI efficiencies.

My take: we’re in the second inning.

— Gene Munster (@munster_gene) February 26, 2026

Silicon Valley investor Balaji Srinivasan characterized the announcement as a signal moment for the tech sector.

“This is the first AI cut. And it will send shockwaves,” Srinivasan wrote on X.

He urged workers to adopt AI tools and boost productivity, warning that companies that fail to adapt risk falling behind competitors embracing automation and agent-driven workflows.

“There will be overcorrection. But the fundamental technical innovation is real. And you need to either disrupt yourself or get disrupted,” he stated.

This is the first AI cut.
And it will send shockwaves.

Remember: Jack is one of the greatest founders of all time. He created this platform that we’re all on, and has been early to many technological shifts. And Block was doing very well as a business.

So, for him to cut 40% of… https://t.co/NbMFoYUzO0

— Balaji (@balajis) February 26, 2026

xAI Signals Hiring Push Amid Layoffs

Shortly after the announcement, a talent executive from xAI posted on X, inviting affected Block employees to apply, writing that “X Money is hiring.”

To all 4000 people that got let go from@blocks: X Money is hiring!

DM me your best work and your resume/linkedin https://t.co/bJ89kCH7ox

— Benedict (@xbxnxdxcxtx) February 26, 2026

Musk touted the idea of a cryptocurrency-enabled “everything app” tied to X Money last year, though the company has yet to provide any substantive updates or formal launch details.

Price Action: Shares of Block, Inc. surged 23.52% in after-hours trading to $67.36 after climbing 4.99% during the regular session, according to Benzinga Pro.

XYZ continues to trade in a negative trend across the short, medium and long term, accompanied by a weak Momentum ranking, according to Benzinga’s Edge Stock Rankings.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo: Sergei Elagin via Shutterstock