Block Inc. (XYZ), the payments company founded and led by Jack Dorsey, is reportedly considering reducing its workforce by as much as 10%, according to a Bloomberg report citing people familiar with the matter. The potential cuts are part of a broader business overhaul at the Oakland, California-based firm, which owns Cash App and Square.
Hundreds of employees have been notified that their jobs are at risk during the company's annual review cycle, which is running through late February. Block employs roughly 12,000 workers, though it had fewer than 11,000 as of November 2025. The company introduced a 12,000-employee cap in 2023 and reiterated this commitment in its third-quarter earnings report.
Despite the news of potential layoffs, Block's stock (XYZ) rose 4.85% on Friday to close at $55.97. This gain comes despite the stock falling 14% year-to-date and losing over 20% in 2025. The company joined the S&P 500 index in July 2025, but while the broader index has risen 1.27% this year, Block shares have declined significantly.
The restructuring effort aims to create a leaner organization and better align Block's core business units. A key strategic move involves linking Cash App more closely with Square, its main seller service arm. Both platforms facilitate bitcoin transactions for individuals and businesses.
Block is also expanding into new areas, including its Bitcoin mining unit Proto and AI tool Goose. The company's Bitkey unit offers a bitcoin self-custody hardware wallet, while its Spiral unit builds and funds open-source projects aimed at advancing bitcoin adoption.
Block is scheduled to report fourth-quarter earnings after market close on February 26, 2026. Analysts expect adjusted earnings of $403 million, or $0.68 per share, on revenue of $6.25 billion. This compares to adjusted EPS of 71 cents in the fourth quarter of 2024.
At its investor day last year, Block shared ambitious growth targets, aiming to reach nearly $12 billion in gross profit by 2026 with projections for mid-teens growth through 2028. Wall Street maintains a Strong Buy consensus on Block stock based on 32 analyst ratings, with an average price target of $85.62, implying 52.97% upside from current levels.
