Jack Dorsey said Block will cut nearly half of its workforce, reducing headcount from more than 10,000 employees to just under 6,000, a move affecting over 4,000 workers.
The announcement was shared in a note posted by the Block CEO on X and released alongside the company’s latest earnings report.
Block said it is not making the cuts due to financial distress, pointing to improving profitability and continued gross profit growth. Dorsey wrote that advances in intelligence tools and flatter teams are fundamentally changing how the company operates, prompting a decisive restructuring rather than gradual reductions over time.
The announcement came as Block delivered stronger-than-expected financial results. The company projected first-quarter operating income of $600 million, topping analyst estimates of $574 million. Gross profit guidance of $2.8 billion also exceeded the $2.72 billion consensus, while full-year gross profit is now expected to reach $12.2 billion, up 18% from the prior period.
Cash App monthly active users outperformed expectations, though quarterly revenue of $6.25 billion came in slightly below the $6.29 billion consensus.
Investors reacted sharply to the news. Block shares rose about 5% during regular trading hours and then surged nearly 25% in post-market trading following the earnings release and restructuring announcement.
In his note, Dorsey said affected employees will receive 20 weeks of salary plus one additional week per year of tenure, equity vested through the end of May, six months of health care coverage, company devices, and $5,000 in transition support, with local variations outside the US.
Dorsey framed the decision as a strategic shift toward building a smaller, more focused company with intelligence at the core of operations, arguing that a single decisive action was preferable to repeated rounds of layoffs that could damage morale and trust.
Source: https://cryptobriefing.com/block-inc-restructuring-workforce-cut/
