Block shares soar 24% as company slashes workforce by nearly half

In this articleBlock said Thursday it's laying off more than 4,000 employees, or about half of its head count. The stock skyrocketed more than 24% in extended trading. "Today we shared a difficult decision with our team," Jack Dorsey, Block's co-founder and CEO, wrote in a letter to shareholders. "We're reducing Block by nearly half, from over 10,000 people to just under 6,000, which means that over 4,000 people are being asked to leave or entering into consultation."Block CFO Amrita Ahuja said the job cuts will position the company "for our next phase of long term growth.""We are choosing to shift how we operate at a time when our business is accelerating and we see an opportunity to move faster with smaller, highly talented teams using AI to automate more work," Ahuja wrote. Dorsey said he expects other companies to similarly overhaul their workforces as they see more efficiency gains from "intelligence tools." "Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes," Dorsey said. "I'd rather get there honestly and on our own terms than be forced into it reactively." Other companies like Pinterest, CrowdStrike and Chegg have recently announced job cuts and directly attributed the layoffs to AI reshaping their workforces. In an X post, Dorsey said he was faced with the choice of laying off staffers over several months or years "as this shift plays out," or to "act on it now." "I chose the latter," Dorsey wrote. "Repeated rounds of cuts are destructive to morale, to focus, and to the trust that customers and shareholders place in our ability to lead." The company had 10,205 employees worldwide as of Dec. 31, 2025, according to its annual filing. Block announced the layoffs in conjunction with its fourth-quarter earnings results. The payments company reported adjusted earnings per share of 65 cents on revenue of $6.25 billion, while analysts estimated 65 cents per share and $6.24 billion, according to LSEG.Gross profit increased 24% from a year earlier to $2.87 billion. For the full year, the company said it sees adjusted earnings per share of $3.66. Analysts anticipated $3.22 per share, according to LSEG.As a result of the workforce reduction, the company expects to incur charges of approximately $450 million to $500 million, consisting primarily of severance payments, employee benefits and noncash expenses related to share vesting, according to a securities filing. Block expects most of the restructuring charges to be incurred in the first quarter. Got a confidential news tip? We want to hear from you.Sign up for free newsletters and get more CNBC delivered to your inboxGet this delivered to your inbox, and more info about our products and services.© 2026 Versant Media, LLC.

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