Some surprising news. Jack Dorsey's Block is cutting 40% of its workforce, or approximately 4,000 people. The reason is "labor savings through AI." From over 10,000 to fewer than 6,000. The decision to almost halve the organization. Business performance is not bad. Revenue is flat, but profits are growing by 20-30%. Still, the company has decided to go ahead with bold restructuring. Dorsey's message is clear: AI is not just an efficiency tool, it will change the optimal size of a company. We may be entering an era in which companies that cannot optimize for AI will be eliminated. And symbolic of this is the market reaction. Following the announcement, the stock price soared 24%. The market is beginning to value "AI-based capital efficiency" over "size." In the age of AI, the "AI density of an organization" will be more important than sales growth rate. A 40% reduction at a company with 10,000 employees. This isn't a one-off precedent; it's a future many companies will face... *** Dear Shareholders: Today, we informed our team of a difficult decision: We're shrinking Block by nearly half, from over 10,000 employees to fewer than 6,000. This will result in over 4,000 people being asked to leave or being put in discussions. In this letter, I want to explain why I believe this is the right path for the company and what Block will look like going forward. 2025 was a strong year for us. Our gross revenue growth more than doubled from Q1 to Q4. In Q4, we achieved the Rule of 40, re-accelerated Cash App network growth, and deepened customer engagement. The core idea is simple: Intelligence tools have fundamentally changed what it means to build and run a company. We're already experiencing this internally. Much smaller teams can do more and do better with the tools we're building. And the capabilities of our intelligence tools are rapidly compounding and improving every week. I don't think this realization is coming soon. In fact, I believe most companies are lagging behind. I believe that within a year, the vast majority of companies will reach the same conclusion and make similar restructuring changes. We want to get there honestly and on our own terms, rather than being forced to do so reactively. We believe Block will create far greater value as a smaller, faster, and intelligent company. This is what we're all about going forward. Q4 Highlights Gross Profit: $2.87 billion (+24% YoY) Cash App Gross Profit: $1.83 billion (+33%) Square Gross Profit: $993 million (+7%) Adjusted Operating Profit: $588 million (20% of gross profit) Full-Year 2025 Highlights Gross Profit: $10.36 billion (+17% YoY)