Jack Dorsey’s Block looking to cut up to 10% of workforce in latest efficiency push: Bloomberg

Core Viewpoint - Block Inc., led by Jack Dorsey, is planning to cut up to 10% of its workforce as part of a broader business restructuring effort [1] Group 1: Workforce Reductions - The layoffs will affect multiple teams and are part of year-end performance evaluations expected to continue through late February [2] - This marks the third significant workforce reduction at Block in approximately two years, following cuts of 931 roles in March 2025 and about 1,000 positions in January 2024 [2] Group 2: Business Restructuring - Block has been undergoing continuous restructuring since 2024, focusing on integrating Cash App with Square and investing in new ventures [3] - In November 2024, Block announced a shift in priorities towards bitcoin mining and a reduction in investments in its decentralized tech arm TBD, as well as the music streaming platform Tidal [3] Group 3: Financial Performance and Projections - At its investor day in November 2025, Block projected mid-teens annual gross profit growth through 2028, with a target of $11.98 billion in gross profit for 2026 [4] - Despite beating expectations in Q2 with a 14% year-over-year gross profit growth, Block missed analyst estimates in Q3, reporting $6.11 billion in revenue and $0.54 adjusted EPS against expectations of $6.34 billion and $0.63 [5] - The company's stock has seen a decline of approximately 37% over the past year and about 13% year to date, closing at $55.97, up about 4.85% on the last trading session [5] Group 4: Broader Industry Context - The layoffs at Block coincide with a broader trend of corporate job cuts, with U.S. employers announcing 108,435 layoffs in January, the highest for that month since 2009 [6] - Block's upcoming Q4 earnings report on February 26 will provide insights into whether the headcount reductions are leading to the margin expansion that investors are anticipating [6]