Block Inc shares rise 5% as company pans major layoffs
Shares of Jack Dorsey’s Block Inc. rose 5% to $56 as the company plans significant layoffs as part of an ongoing restructuring.
The payments company has begun informing hundreds of employees about the potential elimination of their roles during annual performance reviews, as Block undertakes a broader organizational overhaul.
According to sources familiar with the matter, the cuts could affect up to 10% of Block’s workforce. As of the end of November, the company employed just under 11,000 people.
The planned layoffs come amid a reorganization launched in 2024 aimed at improving efficiency and aligning product lines. Block is working to more closely integrate its peer-to-peer payments platform Cash App with its merchant services division, Square.
At the same time, Block Inc. is expanding new initiatives, including its bitcoin mining unit Proto and its artificial intelligence project Goose.
Profit slowdown prompts intervention
According to Bloomberg, Block is scheduled to report quarterly earnings on February 26. Analysts expect adjusted profit of approximately $403 million, or $0.68 per share, on revenue of about $6.25 billion for the fourth quarter.
In its latest report, the company posted net income of $461.5 million for the third quarter on revenue of $6.11 billion. Gross profit rose 18% year over year, driven by 24% growth at Cash App and 9% growth at Square. However, the stock declined after the report as some metrics failed to meet Wall Street expectations.
Bitcoin-related revenue totaled approximately $1.97 billion in the third quarter, down from $2.4 billion a year earlier, but it remained the company’s second-largest revenue source. By the end of September, Block held 8,780 BTC worth more than $1 billion, recording a quarterly loss of $59 million on its bitcoin holdings.
In November, Square, Block’s payments platform, launched a bitcoin payment option that allows merchants to accept BTC directly at checkout through POS terminals. Merchants can process transactions in multiple ways, including bitcoin-to-bitcoin payments and automatic conversion between bitcoin and fiat currency.
The launch expanded Square’s existing tools that enable merchants to convert a portion of daily card payments into bitcoin as part of its broader payments and commerce ecosystem. Square is used by more than four million sellers across eight countries.
Latest Block News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
