Dorsey's Block, Inc. (XYZ) is Laying Off up to 10% of its Staff, Bloomberg Reports

Block, Inc. (NYSE:XYZ) is among the 12 Best Digital Currency and Payments Stocks to Buy Right Now.

Bloomberg News, citing sources familiar with the situation, stated on February 8, 2026, that Block, Inc. (NYSE:XYZ), Jack Dorsey’s fintech startup, is considering laying off as much as 10% of its employees during yearly performance assessments. The firm refrained from commenting right away, and Reuters was unable to independently confirm the report.

In the face of economic uncertainty and growing competition in the payments industry, the firm, which enables bitcoin purchases by purchasing and reselling the cryptocurrency at a slight premium, fell short of Wall Street projections for third-quarter profit. In the third quarter, growth in Block, Inc. (NYSE:XYZ)’s Square category, which provides payment solutions to small and medium-sized businesses, dropped to 9%. The company is set to publish fourth-quarter earnings after market hours on February 26.

Separately, TheFly reported on February 5, 2026, that Citi had reset its price target for Block, Inc. (NYSE:XYZ) to $85 from $105. It kept a Buy rating. This was done ahead of the same results announcement and anticipated a 19% increase in gross profit.

Block, Inc. (NYSE:XYZ) offers merchants payment services and other related services. The company also established Cash App, a person-to-person payment network. It works through the Square and Cash App segments.

While we acknowledge the potential of XYZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.