Block May Cut Up to 10% of Workforce as Dorsey Firm Restructures
Why Is Block Warning Staff About Possible Layoffs?
Block Inc. has begun notifying hundreds of employees that their roles could be eliminated during upcoming annual performance reviews, according to a Bloomberg report citing people familiar with the matter. The move comes as the payments company continues a restructuring effort first launched in 2024.
Bloomberg reported that as many as 10% of Block’s workforce could be affected. The company employed just under 11,000 people as of late November, based on comments previously made by an executive. Any reductions would therefore represent a meaningful adjustment to headcount rather than a narrow team-level change.
The review process is taking place as Block works to realign its businesses, with a focus on tighter integration between its App and its merchant-facing Square platform. Management has framed the reorganization as an internal reset following several years of rapid expansion across payments, crypto, and adjacent services.
Investor Takeaway
How Does This Fit Into Block’s Broader Strategy?
The restructuring reflects a push to simplify Block’s operating model later than building multiple product lines under one corporate umbrella. Cash App and Square have historically grown along diverse paths, serving consumers and merchants respectively, and closer coordination between the two is now a priority.
At the identical time, Block has continued to fund newer initiatives. These include Proto, its BTC mining division, and an artificial intelligence project known internally as Goose. While neither unit currently matches the scale of Cash App or Square, they form part of the company’s longer-term bets beyond core payments.
This dual approach—cutting back in some areas while funding others—highlights the balancing act facing Block as it viewks to improve margins without retreating from businesses tied to future revenue streams.
What Do the Financials Show Going Into Earnings?
Block is scheduled to report fourth-quarter earnings on Feb. 26. Bloomberg data cited by analysts points to adjusted profit of about $403 million, or $0.68 per share, on revenue of roughly $6.25 billion.
In the third quarter, the company reported net income of $461.5 million on $6.11 billion in revenue. Gross profit rose 18% year over year, driven by 24% growth in Cash App and 9% growth in Square. Despite that growth, Block’s shares fell later than the release as several performance metrics failed to meet .
BTC-related activity remains a large contributor to revenue, even as volumes fluctuate. During the third quarter, BTC generated about $1.97 billion in revenue, down from $2.4 billion a year earlier but still ranking as Block’s second-largest revenue stream. The company held 8,780 BTC at the end of September, recording a $59 million valuation loss during the quarter.
Investor Takeaway
Where Do BTC and Square Fit Into the Picture?
Block’s extends beyond trading revenue. In November, Square rolled out a that allows merchants to accept BTC directly at checkout through its point-of-sale terminals. tradeers can choose between BTC-to-BTC and fiat currency.
The feature builds on existing tools that let merchants convert a portion of daily card sales into BTC. More than four million tradeers across eight countries use Square, giving Block a wide distribution base for crypto-linked payment features.
Block shares ended last week up nahead 5%, suggesting investors are weighing restructuring efforts against expectations for near-term profitability. The upcoming earnings report is likely to clarify how management plans to balance workforce adjustments, product integration, and continued exposure to BTC-related revenue.
