Block, Inc. announced on February 8 2026 that it is evaluating a 10% reduction in its workforce, which would affect roughly 1,100 employees out of a total of just under 11,000 staff as of late November 2025. The reduction is being carried out as part of the company’s annual performance‑review cycle and is intended to streamline operations and align staffing with evolving strategic priorities.
Block has been restructuring its organization since 2024, following a March 2025 layoff of 931 employees (about 8% of the workforce) and an earlier 1,000‑employee cut in early 2024. The current reduction continues that trend and coincides with Block’s ongoing integration of its Cash App and Square businesses, as well as investments in new ventures such as Bitcoin mining and artificial‑intelligence initiatives.
Management has stated that the layoffs are strategic rather than financially driven. The goal is to improve cost discipline, increase operational efficiency, and support the integration of Cash App and Square while preserving high‑margin growth engines. The cuts are expected to reduce operating expenses and help the company maintain profitability amid slowing growth in some segments.
The workforce reduction follows a Q4 2024 earnings miss, where adjusted earnings per share were 71 cents versus an expectation of 88 cents, and a Q3 2025 performance that saw Cash App gross profit rise 24% year‑over‑year while Square’s growth slowed to 9% year‑over‑year. By trimming lower‑margin or slower‑growing roles, Block aims to protect its high‑margin Cash App business and focus resources on strategic priorities.
Cash App remains the company’s primary growth engine, with gross profit increasing 24% YoY, whereas Square’s growth has decelerated to 9% YoY. The workforce reduction is likely to target areas with lower growth or margin contribution, thereby preserving the company’s ability to invest in high‑return opportunities.
Block will report its Q4 2025 earnings on February 26 2026. Investors will closely monitor how the layoffs affect the company’s cost structure and whether Block can sustain growth in Cash App and Square while continuing to invest in new ventures.
The 10% workforce reduction represents a significant operational milestone that underscores Block’s commitment to leaner operations and a strategic focus on profitability and competitive positioning.
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