Block Inc., the digital payments company founded by Twitter (now X) co-founder and former CEO Jack Dorsey, may cut up to 10% of its staff during annual performance reviews, according to a Bloomberg report.
Over the weekend, reports surfaced that up to 10% of Block’s roughly 11,000-person workforce is at risk of being cut, with the company having notified hundreds of employees that their jobs could be eliminated during annual performance reviews.
The move is reportedly part of an ongoing business reorganization process started in 2024 to address perceived inefficiencies at the company. If the rumors prove true, the cuts will not represent the first time that Block has reduced its staff by 10%. The company laid off close to 1,000 employees in January 2024, a few months before the reorganization process was officially announced.
In a note viewed by United States publication Fortune in July 2024, Dorsey said the aim of the reorganization was to fix problems related to “collaboration, craft and flexibility.”
“We’re going to reorganize our entire company by function and disband our business unit reporting structure,” added Dorsey.
According to Bloomberg’s February 7 report, citing “people familiar with the matter,” who remained anonymous, the rumored cuts are simply the latest part of this process.
Block has yet to officially comment on the story; however, the company is scheduled to release quarterly earnings on February 26, and, according to Bloomberg, analysts expect adjusted profit of about $403 million, or 68% share, on revenue of roughly $6.25 billion for the fourth quarter.
The company itself has made even more ambitious predictions.
During an Investor Day event in California last November, Block said that it expects to deliver 17% gross profit growth year-over-year to $11.98 billion in 2026. Looking beyond this year, the company predicted its gross profits to grow in the mid-teens range annually through 2028, reaching approximately $15.8 billion, while ‘Adjusted Operating Income’—income after taking out operating expenses and adjusting for non-operating items such as interest, taxes, depreciation of property and equipment—was predicted to grow about 30% annually, to $4.6 billion in 2028.
“We’re moving faster with greater scale and efficiency, driving product velocity across Square and Cash App to serve more customers and help them participate in the modern economy,” said Amrita Ahuja, Block’s COO and CFO at the time. “We’ll continue to invest in innovation across our networks to sustain performance and create long-term value for our customers and shareholders.”
It is unclear whether the growth estimates cited during the Investor Day event take into account the potential staff layoffs.
Watch: What’s ahead for crypto regulation? Highlights from Blockchain Futurist Conference 2025
Source: https://coingeek.com/dorsey-block-weighs-layoffs-of-up-to-10-report/
