Block Inc. Plans 10% Workforce Cut Amid Restructuring Efforts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 09 2026
0mins
Should l Buy XYZ?
Source: Benzinga
Block Inc. shares fell 6.95% as the stock hit a 20-day low amid broader market weakness, with the Nasdaq-100 down 1.02% and the S&P 500 down 0.45%.
The company announced a potential 10% workforce reduction, affecting approximately 1,137 employees, as part of its restructuring efforts aimed at improving profitability. Despite these layoffs, Block's Cash App reported a 24% year-over-year gross profit increase, indicating strong performance in the payments sector. Analysts remain optimistic about the company's long-term potential, expecting it to recover key metrics by 2026.
The market's reaction to the layoffs reflects investor concerns about cost control pressures, even as Block Inc. continues to show growth in its Cash App segment. The restructuring may help the company streamline operations and enhance profitability in the future.
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Analyst Views on XYZ
Wall Street analysts forecast XYZ stock price to rise
30 Analyst Rating
25 Buy
3 Hold
2 Sell
Strong Buy
Current: 51.940
Low
55.00
Averages
86.51
High
108.00
Current: 51.940
Low
55.00
Averages
86.51
High
108.00
About XYZ
Block, Inc. builds technology to increase access to the global economy. The Company operates through two segments: Square and Cash App. The Square includes managed payment services, software solutions, hardware, and financial services offered to sellers, excluding those that involve Cash App. The Cash App segment includes the financial tools available to individuals within the mobile Cash App, including peer-to-peer payments, bitcoin and stock investments. The Cash App also includes Cash App Card, which is linked to customer stored balances that customers can use to pay for purchases or withdraw funds from an ATM. Cash App also includes the BNPL platform. Its Afterpay business is transforming the way customers manage their spending over time. Its TIDAL business is a music platform that empowers artists to thrive as entrepreneurs. Its Bitkey business is a simple self-custody wallet built for bitcoin. Proto business is a suite of bitcoin mining products and services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Growth: Despite the profit decline, Block Inc.'s revenue increased by 3.6% year-over-year to $6.252 billion from $6.033 billion last year, demonstrating the company's strong sales capabilities in the market.
- Future Outlook: The company anticipates a 54% year-over-year growth in adjusted diluted EPS to $3.66 by 2026, showcasing management's confidence in future performance recovery despite current challenges.
See More
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- Stock Market Reaction: Following the announcement, Block's stock surged by 24%, indicating a positive market response to the company's transformation strategy and increased investor confidence in future growth potential.
- Employee Compensation Package: Affected employees will receive severance equal to 20 weeks of salary plus one week for each year of tenure, along with health insurance and transition funds, aimed at mitigating the negative impact of layoffs and preserving the company's reputation.
- Leadership Decision: CEO Jack Dorsey stated that opting for immediate layoffs rather than gradual cuts was to avoid long-term damage to employee morale and customer trust, demonstrating the company's decisiveness and transparency in facing challenges.
See More
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