On February 26, 2026, Jack Dorsey announced that Block, the fintech company behind Square, Cash App, and Afterpay, is cutting more than 4,000 employees — reducing its global workforce from over 10,000 to just under 6,000. That is a reduction of more than 40% in a single announcement.
Dorsey framed the decision not as a sign of financial distress, but as a deliberate organizational shift. Block's gross profit in 2025 reached more than $10 billion, up 17% year over year.
The company's stock surged more than 23% in after-hours trading following the announcement. In a letter to shareholders, Dorsey wrote that intelligence tools have changed what it means to build and run a company, and that a significantly smaller team using those tools can do more and do it better.
Whether or not one accepts that framing at face value, the consequences are real and immediate for the thousands of workers affected. For those on H-1B status, it is also an immigration event with a strict timeline.
Under federal regulations, H-1B visa holders are permitted a discretionary grace period of up to 60 consecutive calendar days following the end of employment, or until the expiration of their authorized nonimmigrant validity period, whichever is shorter.
This rule, which took effect in January 2017, replaced a prior standard under which H-1B workers were deemed out of status starting the day after their employment was terminated, with no grace period at all.
The grace period begins the day after the last day of employment. Even if an employer provides a severance period or severance pay, the clock starts on the final day of employment, not the date severance ends.
Note that the grace period does not extend beyond the expiration date on your Form I-94. For example, if your I-94 expires 25 days after your last day of work, your effective grace period is 25 days, not 60.
Checking your I-94 record through the CBP online portal (https://i94.cbp.dhs.gov/search/recent-search) should be your first step after a layoff.
The most direct path forward is a transfer to a new employer. If an employer files a new H-1B petition on a laid-off worker's behalf, the worker can begin employment as soon as USCIS receives the petition—they do not need to wait for the petition to be approved. This portability provision is one of the most valuable protections available to H-1B holders in this situation.
Acting early is important. If a transfer petition is not filed until very close to the end of the grace period, USCIS may approve the transfer but deny the status change, which would require the worker to leave the United States, obtain a new H-1B visa stamp abroad, and reenter before beginning work. Crucially, this could require the new H-1B employer to pay the $100,000 H-1B fee, on top of the other fees paid for the H-1B transfer petition.
One additional note on travel: international travel during the grace period is not advisable. If you leave the United States during the grace period, that period ends. Traveling without a valid visa also undermines your ability to reenter the country after the trip. Hold off on any international trips until a new petition has been filed and your status is clear.
If your spouse holds their own H-1B status, a common option is to file a change of status to H-4 dependent status while you continue your job search.
H-4 status does not on its own provide work authorization, but if your H-1B spouse has an approved I-140 immigrant petition, you may be eligible for H-4 EAD work authorization, which does allow employment.
For workers with a strong professional track record (published research, significant contributions to their field, industry recognition, or a history of senior-level roles), the O-1A visa for individuals with extraordinary ability is worth serious consideration. It does not require an employer sponsorship in the traditional sense, allows for more flexibility than the H-1B, and is not subject to the annual lottery.
The O-1A takes longer to prepare than an H-1B transfer, so this conversation should begin as early as possible in the job search, not as a last resort. Consulting an immigration attorney while the grace period is still intact gives you clarity on the feasibility of the O-1A option.
If returning to school is part of your plans, a change of status to F-1 student status is available, though it means pausing work authorization for a period of time during your studies. Work authorization derived from F-1 status needs to be discussed with the Designated School Official (DSO) at the school you choose to attend.
A B-1/B-2 visa is another option if you need additional time in the country while finalizing next steps, though it also carries no work authorization. Engaging in work while on the B-1/B-2 visa can result in significant government penalties.
If none of the above options are viable within the grace period, departing the United States before the window closes preserves your lawful status and avoids accruing unlawful presence.
Accruing more than 180 days of unlawful presence can trigger a three-year bar from reentering the United States, and accruing one year or more can result in a ten-year bar. These are serious consequences that must be considered when planning your next steps.
For workers who had an active PERM labor certification or an approved I-140 immigrant petition tied to Block, the layoff has additional consequences. A PERM application is employer-specific, and is not transferrable to a new employer. A new employer would need to restart the labor certification process from the beginning.
An approved I-140 is more durable. Under AC21 portability rules, a I-140 approval from a prior employer can be used to extend H-1B status beyond the 6 year limit with a new H-1B employer.
If you have a pending employer-based Adjustment of Status application that has been pending for at least 180 days, the Adjustment of Status may be portable to a new employer, as long as the underlying offered role is in the same or similar occupational role. For example, if you have a Adjustment of Status application pending for more than 180 days, with the underlying role as a Software Engineer, if you are offered a new job as a Software Developer, the Software Developer job could be considered to be in the same or similar occupational role the Software Engineer role.
Workers in this situation should review their specific timeline with an immigration attorney before making any decisions about their next employer.
It is worth noting that the 60-day grace period, while a significant protection, is not ironclad. The Department of Homeland Security retains discretion to shorten or eliminate the grace period on a case-by-case basis.
As of early 2026, there have been anecdotal reports of Notices to Appear being issued to some H-1B holders within the 60-day window, particularly those with I-94 records reflecting prior status complications. Filing for a transfer or change of status promptly, rather than waiting, remains the safest course.
Block's layoff has made a substantial pool of experienced fintech, engineering, product, and compliance professionals available in the market, many of whom have immediate work authorization through an H-1B transfer. The portability rule means a new employer can onboard a transferred H-1B worker as soon as the petition is received by USCIS, the H-1B petition does not need to be approved. However, employers may have their own policy on when they will onboard a H-1B employee.
For organizations that have been waiting for the right moment to add senior technical or operational talent, acting quickly serves both the candidate and the company. The 60-day window is short, and experienced H-1B workers move fast.
Block is not the only company making moves of this kind. In 2025 alone, companies attributed 55,000 job cuts directly to AI adoption, and early 2026 has already seen over 22,000 AI-related workforce reductions across the tech sector.
The pattern is accelerating, and Block's announcement will not be the last of its kind this year.
For workers on employer-sponsored visas, this environment makes one thing clear: immigration status that depends entirely on a single employer carries inherent risk. Understanding your options before a layoff happens, and knowing what actions to take within the grace period if it does, is part of responsible career and immigration planning in 2026.
If you have been affected by layoffs and are evaluating an H-1B transfer, O-1A, or change of status, schedule a free consultation with Alma’s immigration attorneys today.
