Jack Dorsey’s Block Plans 10% Workforce Cut Amid Business Overhaul

Jack Dorsey-led fintech firm Block Inc. is reportedly planning to lay off hundreds of employees during its annual performance reviews. Employees were informed of the plan as Block prepares to begin a broader business overhaul, Bloomberg reported on Sunday.

Around one in ten roles at Block could be eliminated, according to people cited in the report. The company employed just under 11,000 people as of late November. Bloomberg noted that the fintech firm has been reshaping its operations since 2024, revamping reporting structures and pursuing a leaner operating model.

It is working to more closely link its peer-to-peer payments app Cash App with merchant platform Square, while expanding newer bets such as its Bitcoin mining unit Proto and its AI product, Goose.

The layoffs are expected to be spread across multiple teams and are taking place as managers complete year-end performance reviews, a process that runs until late February.

This could help Block move closer to a goal outlined at its investor day last year, when executives said the company aims to generate nearly $12 billion in gross profit in 2026 and deliver mid-teens growth through 2028.

That said, Block’s recent earnings results have been uneven. In the fourth quarter, Block reported a 4.5% rise in revenue to $5.77 billion from a year earlier. Gross profit climbed 14% year on year to $2.31 billion, reflecting growth across its businesses, even as competition intensified from rivals such as Toast and Fiserv’s Clover.

The company processed $61.95 billion in gross payment volume, exceeding StreetAccount estimates of $61.3 billion, while adjusted EBITDA rose to $757 million, above analyst expectations of $740 million, CNBC reported.

Looking ahead, Block said it expects gross profit to grow 15% this year to $10.22 billion and forecast adjusted operating income of $2.1 billion, translating into a 21% margin. Block has broadened its payments business beyond point-of-sale services to include lending and other financial offerings. The company acquired buy now, pay later firm Afterpay for $29 billion in 2021 and has since integrated it into the Cash App and Square platforms.

Chief executive Jack Dorsey said integrating services such as Cash App and Afterpay is driving higher spending and user engagement. He noted that Block’s large Cash Card user base allows new features to be rolled out quickly and adopted almost instantly.

Analysts see lending as a major long-term revenue driver, alongside potential gains from merchant services and advertising within Cash App. The unit posted gross profit of $1.38 billion, up 16% year on year and above StreetAccount estimates of $1.36 billion.

Dorsey also outlined a broader strategy to merge Cash App and Square into a single financial ecosystem, reducing the need for users to rely on multiple apps.