Fintech company Block has begun rehiring a handful of employees who were laid off just weeks ago in what is considered to be one of the tech sector’s largest single-round workforce layoffs and adjustments of 2026. In February, Block, led by CEO Jack Dorsey, who is also a co-founder of Twitter (now X), announced it was eliminating more than 4,000 positions, reducing headcount from over 10,000 to under 6,000. Now, though, some of the laid-off employees have confirmed to be rejoining the company, and the reasons seem to be unusual.
At the time, Dorsey framed the cuts in a shareholder letter as a strategic decision due to rapid advances in AI. He wrote that “intelligence tools have fundamentally changed what it means to build and run a company.” The layoffs spanned teams supporting Square, Cash App, and other core products, with the company describing the action as a “hard, clear” restructuring to boost long-term efficiency and avoid repeated smaller cuts.
The severance packages were described as generous, with over 20 weeks of pay (based on tenure), vested equity through May, six months of continued healthcare, retention of corporate devices, and an additional $5,000 cash payout.
Block starts rehiring quietly
Within two to three weeks of the layoffs, at least four former employees publicly confirmed on LinkedIn that Block had invited them back. The rehires include roles in engineering, creative strategy, infrastructure (supporting Square and Weebly), and recruiting, according to a report from Business Insider.
Some of the examples include:
– A design engineer who stated Block leadership cited a “clerical error” in his layoff and offered reinstatement.
– A creative strategy lead who announced returning to the company after being asked to rejoin.
– An infrastructure specialist who noted his team was not fully restored but sufficient support remained for critical customer services.
– A recruiter whose layoff post was later removed amid reinstatement discussions.
Block has attributed some cases to administrative oversights during the fast-tracked layoff process, with managers reaching out individually to correct staffing decisions. Sources say that these returns are isolated adjustments rather than the start of a broader rehiring process, or a reversal of the restructuring plan.
Tech sees major AI-driven layoffs in 2026
In 2026, more than 40,000 tech jobs will have been cut in Q1 alone as companies accelerate AI adoption and recalibrate headcount after pandemic-era expansion. Block’s move was among the boldest, with Dorsey arguing it positions the firm competitively despite immediate disruption.
While no official company statement has addressed the rehires beyond individual cases, the development brings forward the practical challenges in executing large-scale reductions, even when justified by AI productivity gains.