The company announced a major restructuring, cutting over 40% of its workforce (more than 4,000 jobs) to shift toward a smaller, AI-centric operating model. CEO Jack Dorsey framed the move as a proactive strategy for agility and productivity, not financial distress. The announcement was paired with strong full-year 2025 financial results, raised 2026 guidance, and improved gross profit expectations. The market reacted very positively, with the stock surging over 22% in after-hours trading and nearly 17% in a single regular session following the news.