Block Inc, the company co-founded by Jack Dorsey, has announced a significant workforce reduction, eliminating more than 4,000 jobs, which represents over 40% of its total staff. This drastic move comes as part of a broader restructuring strategy aimed at aligning its organizational framework with its operational goals and strategic priorities.
The announcement was made alongside the release of the company”s fourth-quarter and full-year earnings for 2025. Following the news, shares of Block surged by more than 23% during after-hours trading, reflecting investor confidence in the restructuring plan.
Block anticipates that the restructuring will incur costs ranging from $450 million to $500 million, primarily attributed to severance payments, employee benefits, and other associated cash expenses, along with non-cash costs related to the vesting of share-based awards. Most of these charges are expected to be recorded in the first quarter of fiscal 2026, with the restructuring largely finalized by the end of the second quarter.
By the end of 2025, Block had more than 10,200 full-time employees, emphasizing the scale of the layoffs. The company”s operations extend beyond traditional payment services, encompassing innovations in the cryptocurrency space, particularly through its products linked to Bitcoin trading and payments via Cash App and Square.
Block”s restructuring reflects a broader trend within the fintech sector, where companies are responding to slower growth rates, tighter capital availability, and increased scrutiny over operational expenditures. In its recent 8-K filing with the Securities and Exchange Commission, Block detailed its intent to streamline its workforce to better match its evolving business model.
Despite these cuts, Block”s core business has shown resilience, reporting $10.4 billion in gross profit across its three main revenue categories: commerce enablement, financial services, and its expanding Bitcoin ecosystem. The company also noted that Cash App had 59 million monthly transacting users in the U.S. at the end of 2025, with customer inflows reaching $316 billion during the year.
Block plans to hold an earnings conference call later this week to provide further insights into its financial performance and the implications of this major restructuring effort.
