Block, the fintech company founded by Jack Dorsey, is undergoing a massive restructuring, reducing its workforce by nearly half. The company will cut over 4,000 jobs, shrinking its employee base from over 10,000 to just under 6,000.
In a note to employees, CEO Jack Dorsey described the move as “one of the hardest decisions” in the company’s history. He clarified that the layoffs were not driven by financial distress, noting that gross profit continues to grow and profitability is improving. Instead, Dorsey pointed to rapid advances in AI and intelligence tools, and a strategic shift toward smaller, flatter teams as the core reasons for the overhaul. “A decision at this scale carries risk, but so does standing still,” Dorsey wrote on X.
To avoid prolonged uncertainty, the company opted for a single, large reduction rather than implementing rolling layoffs. Affected employees will receive a severance package including 20 weeks of salary plus one additional week per year of tenure, equity vested through the end of May, six months of healthcare coverage, corporate devices, and $5,000 in transition support.
The market reacted positively to the news. Block's shares surged more than 20% in after-hours trading following the announcement, closing the regular session at $54.53. This indicates investor approval of the move toward cost discipline and operational efficiency driven by technology.
Despite the significant operational shift, Block's deep integration with Bitcoin remains a cornerstone of its business. The company operates the Cash App, which allows users to buy and sell Bitcoin, and holds Bitcoin on its balance sheet. In its Q3 2025 earnings report, Block generated nearly $2 billion in Bitcoin revenue, accounting for close to one-third of its total revenue. Dorsey has consistently positioned Block as closely aligned with Bitcoin development, investing in related infrastructure like self-custody tools and mining initiatives.
This restructuring follows a previous round of cuts last year when Block eliminated over 900 roles, reflecting broader pressure in the fintech sector from rising funding costs and slower transaction growth.
