Block Inc. plans to reduce its workforce by about 10%, or roughly 1,100 roles, as the company pursues cost controls and a leaner operating structure, according to Bloomberg. Internal reviews tied to annual performance evaluations have already informed employees that certain positions may be eliminated, with final decisions expected in the coming weeks.
The reductions affect a company that reported just under 11,000 employees in late 2025. The process unfolds during a period of continued reorganization across core operations, including Cash App and Square, as Block attempts to align teams and resources around higher-margin and faster-growth areas.
Multi-year overhaul shapes current strategy
The planned layoffs mark another step in a restructuring effort that began in 2024. Block has integrated business units, simplified management layers, and redirected spending toward artificial intelligence and cryptocurrency initiatives. The company has also scaled back or wound down several ventures, including its decentralized technology arm TBD and parts of its music platform operations, while prioritizing bitcoin mining and payments infrastructure.
Managers conduct role reviews as part of performance cycles that extend through late February. This marks the third significant workforce reduction in roughly two years. The company cut about 1,000 jobs in January 2024 and removed 931 roles in March 2025, as the Guardian reported.
Block also continues to invest in automation and internal productivity tools. The company built an in-house artificial intelligence assistant called Goose to support operations and efficiency goals across teams.
Pressures in payments and software shape outlook
The workforce decision reflects a challenging operating environment. Growth in Square’s merchant ecosystem has slowed amid pressure on small businesses, while competition in digital payments and financial services remains intense. Investors track cost discipline closely as margins face pressure from expansion efforts and market volatility.
Shares of Block and other software firms fell last week amid concerns about disruptions tied to rapid advances in artificial intelligence tools, including new releases from Anthropic. The broader sector has seen heightened volatility as companies reassess hiring and spending priorities.
Block has stated that it aims to balance growth investments with tighter cost controls. The company seeks to streamline operations and direct resources toward business lines with stronger profit potential.
Earnings performance and investor expectations
Financial results have delivered mixed signals. Block reported 14% year-over-year gross profit growth in the second quarter and raised its full-year outlook. Third-quarter performance fell short of consensus expectations, with revenue at $6.11 billion and adjusted earnings per share at $0.54, compared with expectations of $6.34 billion and $0.63. Shares dropped nearly 10% in after-hours trading following that report.
The stock has declined about 37% over the past year and about 13% year to date, though it closed at $55.97 on Friday, up roughly 4.85% for the session, according to the Google Finance data. Investors now look to the upcoming fourth-quarter earnings release for clearer signals on profitability and operational discipline. Block has scheduled the report for Feb. 26.
During its November 2025 investor day, the company outlined a three-year financial framework that targets mid-teens annual gross profit growth through 2028. It also projected about $11.98 billion in gross profit for 2026 and announced a $5 billion increase to its share repurchase program.
Broader labor market and internal priorities
The layoffs arrive amid a wider wave of corporate workforce reductions across the United States. Challenger, Gray & Christmas reported 108,435 announced layoffs in January, the highest total for that month since 2009. Technology and financial firms have led many of the recent cuts as companies adjust hiring plans and automate internal functions.
Block’s strategy now centers on tighter integration of Cash App and Square, expansion in bitcoin-related services, and continued development of artificial intelligence tools. Internal reviews highlight a push for productivity and operational alignment rather than expansion through headcount.
Strategic direction faces real-world tests
Block must now translate restructuring into financial results. Investors expect clearer progress on margins, efficiency, and revenue quality. The upcoming earnings report will offer the first detailed measure of how workforce reductions and operational changes affect performance.
The company has emphasized discipline in spending while maintaining investment in areas it views as central to long-term growth. Execution will determine whether restructuring stabilizes performance after uneven earnings and share price declines.
Gunel Ismayilova
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