Block Inc, the fintech company co-founded by Jack Dorsey, has announced a significant workforce reduction, cutting more than 4,000 jobs, which accounts for over 40% of its total workforce. This restructuring plan was revealed alongside the company’s fourth-quarter and full-year 2025 earnings, as it seeks to realign its organizational structure with its operational model and strategic goals.
With the total employee count at just over 10,200 at the end of 2025, this move underscores the depth of the layoffs, positioning Block among the leading companies in the fintech sector undertaking substantial workforce reductions this year. As the industry faces challenges such as slowed growth, tighter capital availability, and increased scrutiny on operating expenses, many firms are reassessing their staffing needs.
In a regulatory filing with the Securities and Exchange Commission, Block disclosed that it expects to incur restructuring charges totaling between $450 million and $500 million. These costs primarily relate to severance packages, notice-period pay, employee benefits, and other cash-related expenses, as well as non-cash charges connected to the vesting of share-based awards. Most of these expenses are projected to be recorded in the first quarter of fiscal 2026, with the restructuring process expected to be largely finalized by the end of the second quarter.
Block advised that these financial estimates are based on certain assumptions and cautioned that actual costs may vary significantly.
Throughout 2025, Block reported a strong performance in its services, with its Cash App reaching 59 million monthly transacting users in the United States alone, processing $316 billion in customer inflows for the year. The company’s operations include consumer and merchant payment solutions through Cash App and Square, along with a growing focus on Bitcoin-related products, encompassing trading, self-custody, and merchant payment solutions.
According to its latest 10-K annual filing, Block categorized its revenue into three segments: commerce enablement, financial services, and its Bitcoin ecosystem. Collectively, these segments generated a gross profit of $10.4 billion in 2025.
As the company navigates this substantial transition, Block has planned an earnings conference call and webcast to provide further insights into its financial results for the quarter and year ending December 31, 2025. Following the announcement, shares of the New York Stock Exchange-listed company surged by more than 23% in after-hours trading, reflecting investor optimism regarding the strategic realignment.
