Block Inc. Reduces Workforce by 10% Amid Restructuring

TLDR

• Block Inc. to cut 1,150 jobs, saving $235 million annually.
• This is Block’s third major layoff round in two years.
• Company aims to enhance AI and Bitcoin services with savings.

Block Inc., under the leadership of Jack Dorsey, is set to reduce its workforce by 10%, approximately 1,150 employees, as part of a new strategic focus. These layoffs are connected to annual performance reviews and a company-wide restructuring aimed at cost reduction and growth in AI and Bitcoin ventures.

This marks the third major round of layoffs by Block in the past two years. Previously, the company reduced its staff by roughly 1,000 employees in January 2024, followed by another 931 in March 2025. These efforts were part of a broader initiative to streamline operations related to Cash App and Square while scaling down other ventures.

Jack Dorsey’s Strategic Vision

Jack Dorsey, prominent in tech for co-founding Twitter and Block, is steering the company towards an AI and Bitcoin-centric future. At an investor event in November 2025, Dorsey emphasized the importance of AI automation as a means to enhance operational speed and reduce costs. These strategic changes are anticipated to help the company in reallocating resources efficiently.

Despite Block’s significant employment cuts, there have been no direct remarks from Dorsey or other company executives regarding this decision. Representatives have declined to comment on the layoff specifics when asked.

Financial Implications of Workforce Reduction

The layoffs are expected to generate annual cost savings of up to $235 million. This financial cushioning will help the company in channeling more resources into the development of AI tools and Bitcoin services. The firm’s CFO, Amrita Ahuja, has previously set a headcount cap of 12,000 employees to maintain operational efficiency.

Block’s Q4 2025 earnings are set to be published by February 26, 2026, with projections indicating revenue of $6.25 billion and an adjusted profit of $403 million. These figures underline the company’s significant restructuring efforts in enhancing profitability.

Focus on Bitcoin and Technological Innovations

Block’s renewed focus is particularly strong in Bitcoin mining and integration services, reflective of its strategic investment in cryptocurrency. Although Bitcoin remains at the center of these developments, there have been no reported asset changes involving other cryptocurrencies like Ethereum or altcoins tied to this corporate decision.

The company’s initiatives also include developing AI tools that enhance its existing fintech platforms while exploring new technological landscapes. With such strategic moves, Block aims to consolidate and strengthen its market position in the AI and Bitcoin sectors.

Previous Layoffs and Market Dynamics

Block’s current layoffs align with past efforts from 2024 and 2025, where the company focused on financial technology and cryptocurrency growth. These restructuring strategies have historically resulted in workforce reductions but have improved the company’s margins in the long run. This pattern is seen across the tech industry, exemplified by large-scale reductions like Amazon’s 30,000 job cuts in early 2026.

The market response to these shifts has been reflected in Block’s share performance, which saw a 13% decline year-to-date and a 34% decrease over the past 12 months as of early 2026. Despite the fluctuations, Block remains focused on enhancing its competitive edge through strategic investments.