Jack Dorsey's Block Weighs 10% Workforce Cuts Amid Broader Restructuring: Report

Jack Dorsey‘s Block Inc. (NYSE:XYZ) is reportedly telling its employees about potential job cuts during its annual performance review amid broader restructuring.

The fintech company is targeting 10% of its workforce for potential layoffs, reported Bloomberg on Saturday. As per the 10-K filing, Block had nearly 11,372 employees globally.

The company is aiming to integrate its CashApp payment vehicle with its merchant platform Square. At the same time, Dorsey is also focusing on developing the AI tool Goose as well as the company’s Bitcoin (CRYPTO: BTC) initiative called Proto, as per the publication.

Layoffs Loom, But Analyst Predicts Better 2026

The talk of layoffs at Block is not new. In March, the company had reportedly slashed over 900 employees amid broader overhaul and performance concerns. The laid-off workers belonged to managerial levels as well as individual contributor roles.

Despite its third quarter earnings being a mixed bag, missing Wall Street expectations on both earnings and revenue, JPMorgan analyst Tien-tsin Huang expressed confidence. He said that both CashApp and Square were the backbone of the company’s ecosystem.

Gross profit for CashApp jumped 24% year over year, with monthly transacting actives surged to 58 million after six flat quarters. However, Square only saw a 9% growth in gross profit over the year, as higher processing costs pressurized margins. However, JPMorgan’s Huang predicted that by 2026, the company would see improved margins and recovered metrics as temporary headwinds go away.

The company is scheduled to report its fourth-quarter earnings on February 26.

Block holds a growth rating of 90.06% and a value rating of 81.02%, according to Benzinga's Proprietary Edge Rankings. Benzinga’s screener allows you to compare XYZ’s performance with its peers.

Price Action: Over the past year, Block stock declined 34.98%, as per data from Benzinga Pro. On Friday, the stock climbed 4.85% to close at $55.97. It is up 0.43% in pre-market trading on Monday.

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