Block Inc. Faces Potential Layoffs Amid Restructuring Efforts

Block Inc., the payments company led by Jack Dorsey, is notifying hundreds of employees about possible job eliminations as part of its annual performance reviews. According to Cointelegraph, this move is part of a broader restructuring initiative aimed at enhancing operational efficiency and aligning product lines. Bloomberg reported on Sunday that up to 10% of Block's workforce could be impacted, citing sources familiar with the situation. As of late November, the company employed just under 11,000 people, according to an executive at the time. The restructuring comes as Block seeks to integrate its peer-to-peer payments platform, Cash App, more closely with its merchant services arm, Square. Additionally, the company is expanding newer ventures, including its Bitcoin mining division, Proto, and an artificial intelligence project known as Goose. Despite these changes, Block's shares saw a nearly 5% increase on Friday, according to Google Finance. Block is set to release its quarterly earnings on February 26, as reported by Bloomberg. Analysts anticipate an adjusted profit of approximately $403 million, or 68 cents per share, on revenue of around $6.25 billion for the fourth quarter. In the previous quarter, Block reported a net income of $461.5 million on $6.11 billion in revenue, with gross profit rising 18% year over year. This growth was driven by a 24% increase in Cash App and a 9% rise in Square, although the stock experienced a decline post-release due to some performance metrics not meeting Wall Street expectations. Bitcoin remains a significant revenue stream for Block, generating about $1.97 billion in revenue for the third quarter, down from $2.4 billion the previous year. By the end of September, Block held 8,780 BTC, valued at over $1 billion, and recorded a $59 million quarterly valuation loss. In November last year, Square, Block's payments platform, introduced a Bitcoin payment option for merchants, enabling them to accept BTC directly at checkout through its point-of-sale terminals. This launch complements earlier tools that allow merchants to convert a portion of daily card sales into Bitcoin, as part of Square's broader payment and wallet ecosystem. Currently, more than four million sellers across eight countries utilize Square's services.