Block Inc. Reportedly Planning Workforce Reduction of Up to 10% Amid Corporate Restructuring
Jack Dorsey's Block Inc. is weighing potential job cuts that could impact as many as 10% of employees while reorganizing its business structure, merging Cash App with Square operations, and pursuing growth in Bitcoin mining and artificial intelligence ventures.
Block Inc., the payments company led by Jack Dorsey, has started notifying hundreds of staff members that their positions may be cut as part of annual performance evaluations, according to reports, while the organization pursues a broader restructuring initiative.
According to a Bloomberg report published on Sunday, the layoffs could impact up to 10% of the company's total workforce, based on information from sources with knowledge of the situation. An executive was said to have indicated at the time that Block had approximately 11,000 employees as of late November.
The workforce reduction plan emerges as Block transforms its business operations in the wake of a reorganization initiative that began in 2024, designed to enhance operational efficiency and better coordinate its various product offerings. The organization is pursuing tighter integration between Cash App, its peer-to-peer payment service, and Square, its merchant payment processing division.
Simultaneously, Block is channeling resources into emerging ventures, including Proto, its Bitcoin (BTC) mining operation, and Goose, an artificial intelligence initiative under development.
Block expected to post $403 million Q4 profit
The company is slated to unveil its quarterly financial results on Feb. 26, Bloomberg reports. Market analysts are forecasting an adjusted profit of approximately $403 million, equivalent to 68 cents per share, with revenue projected at around $6.25 billion for the fourth quarter, the report indicates.
Block's most recent financial disclosure showed third-quarter net income reaching $461.5 million against revenue of $6.11 billion. The company saw gross profit climb 18% compared to the same period in the previous year, propelled by Cash App's 24% expansion and Square's 9% increase, although the stock price declined following the announcement as certain performance indicators fell short of Wall Street analyst projections.
During the third quarter, Bitcoin operations contributed approximately $1.97 billion in revenue, a decrease from $2.4 billion recorded in the prior year period, yet it remained the company's second-most significant revenue source. Block maintained a position of 8,780 BTC valued at more than $1 billion at the conclusion of September, while documenting a $59 million valuation loss for the quarter.
Square launches Bitcoin payments for merchants
In November of last year, Square, the payment processing platform under Block's ownership, introduced a Bitcoin payment capability, enabling merchants to receive BTC payments directly during checkout transactions via its point-of-sale terminal systems. Merchants can handle transactions through various methods, including direct Bitcoin-to-Bitcoin transfers and automated conversion services between Bitcoin and traditional fiat currencies.
The new feature builds upon existing functionality that enables merchants to allocate a percentage of their daily credit card sales revenue into Bitcoin, forming part of Square's comprehensive payment and digital wallet infrastructure. Square's merchant network spans over four million sellers operating across eight countries worldwide.