Dorsey, Sequoia And Redpoint Lay Out A New Playbook For AI-Native Companies

Block cut headcount from over 10,000 to just under 6,000.

Block reported FY2025 gross profit of $10.36 billion (up 17% YoY) and raised 2026 gross profit guidance to $12.20 billion.

Internal AI tools were heavily used: Goose saved engineers 8–10 hours a week, 90% of recent code submissions were AI-authored, and OpenClaw is an open-source AI agent.

Block's stock jumped roughly 22% after the announcement; Goldman Sachs upgraded it to overweight and raised its price target, and Morgan Stanley also upgraded it.

Critics raised AI‑washing concerns (Bloomberg); Om Malik called it a 'narrative substitution template,' Sam Altman warned many AI layoff stories were ahead of reality, and Sequoia plus Dorsey & Botha pushed organizational arguments that org charts are obsolete.