Jack Dorsey's Block to lay off nearly 10% of workforce
What's the story
Jack Dorsey's fintech company, Block Inc., is planning to lay off nearly 10% of its workforce as part of a major business overhaul, according to a report by Bloomberg. The layoffs will be announced during annual performance reviews. The firm has already notified hundreds of employees about the possible job cuts.
Company evolution
Layoffs part of ongoing business transformation
As of late November, Block had a headcount of under 11,000 employees. The company has been transforming its business model and staffing since 2024. This includes reorganizing reporting lines and developing a strategy for greater efficiency. The restructuring is part of an effort to integrate Cash App with Square, expand Bitcoin mining venture Proto, and develop AI tool Goose.
Financial outlook
Block's earnings report and growth projections
Despite the restructuring efforts, Block's recent earnings have been uneven and its stock has plummeted over the past year. The company is scheduled to announce its earnings after market close on February 26. Analysts expect it to post adjusted earnings of $403 million ($0.68 per share) for Q4 on revenue of $6.25 billion. This comes as part of a broader strategy to achieve nearly $12 billion in gross profit by 2026, with mid-teens growth projected through 2028.