Block Slashes Workforce by 40% in AI-Driven Restructuring as Shares Surge 20%
Jack Dorsey's Block Inc. unveiled a brutal workforce reduction targeting nearly half its employees, slashing headcount from 10,205 to under 6,000 in what the CEO called an "AI-era" reset. The MOVE triggered a 20% premarket stock surge as investors applauded $450-$500 million in restructuring charges paired with ambitious 2026 targets: $12.2 billion gross profit (18% YoY growth) and $3.2 billion adjusted operating income.
The fintech pioneer's drastic cuts come alongside bullish projections, with Q4 gross profit hitting $2.87 billion (24% YoY) led by Cash App's $1.83 billion performance. Dorsey's gamble positions Block among the first major financial firms to explicitly restructure around artificial intelligence - a high-stakes pivot that left analysts parsing whether this signals visionary leadership or desperation.
