After Block's Layoffs, Could These 3 Companies Be Next?

2026-02-28 02:05:00 ET

The news out of Block (NYSE: XYZ) on Thursday night sent shockwaves through the tech industry.

The Jack Dorsey-run fintech company said it would lay off more than 40% of its employees, citing gains from artificial intelligence (AI). Dorsey said, "The core thesis is simple. Intelligence tools have changed what it means to build and run a company. A significantly smaller team, using the tools we're building, can do more and do it better."

Some investors balked at the move, noting that Block had ramped up its headcount during the pandemic and has been bloated since. However, software stocks fell on the news as it seemed to reflect the same fears in the Citrini Research blog post that shook the market on Monday.

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