TLDR
- Block (XYZ) is contemplating reducing its workforce by up to 10%, impacting hundreds of its approximately 12,000 employees, as part of an annual review and business reorganization.
- XYZ shares climbed 4.85% on Friday to $55.97, despite a 14% decline year-to-date and over 20% in 2025, with its earnings report scheduled for February 26.
- Analysts anticipate adjusted earnings of $403 million ($0.68 per share) on revenues of $6.25 billion when Block announces its fourth-quarter results.
- The company is undergoing restructuring to more closely integrate Cash App with Square, while also expanding into Bitcoin mining through its Proto unit and AI tool Goose.
- Block aims to achieve nearly $12 billion in gross profit by 2026, with mid-teens growth projected through 2028, and intends to maintain its 2023 employee cap of 12,000.
Block is evaluating up to 10% of its workforce as part of a broader business reset. Hundreds of employees have been informed that their positions are at risk during the company’s ongoing annual review cycle.
These reviews are expected to conclude by late February. The Oakland, California-based company currently employs roughly 12,000 workers, although its headcount was below 11,000 as of November.
XYZ shares finished Friday trading up 4.85% at $55.97. The stock has seen a 14% decrease year-to-date, following a drop of more than 20% in 2025.
Block is slated to release its fourth-quarter earnings after the market closes on February 26. Analysts forecast adjusted earnings of $403 million, or $0.68 per share, on revenue totaling $6.25 billion.
The company reported adjusted EPS of 71 cents in the fourth quarter of 2024. CEO Jack Dorsey leads the payments firm, which owns Cash App and Square.
Restructuring Strategy
Block has been reorganizing its teams since 2024, with an objective to operate more efficiently and align its core business units.
The firm is working to integrate Cash App more closely with Square, its primary seller service division. Both platforms facilitate bitcoin transactions for individuals and businesses.
Block is also venturing into new sectors. The company operates Proto, a Bitcoin mining unit, and Goose, an AI tool.
Its Bitkey division provides a hardware wallet for bitcoin self-custody. The Spiral unit develops and funds open-source projects aimed at promoting bitcoin adoption.
The proposed job reductions are distributed across various teams, with managers conducting year-end reviews as part of the restructuring initiative.
Financial Targets and Performance
Block outlined its growth targets at its investor day last year, aiming to achieve nearly $12 billion in gross profit by 2026.
The company projects mid-teens growth through 2028. Block established a 12,000-employee cap in 2023 and reaffirmed this commitment in its third-quarter earnings report.
The company was added to the S&P 500 index in July. The S&P 500 has gained 1.27% this year, while XYZ shares have declined 14%.
Wall Street analysts maintain a Strong Buy consensus for Block stock, based on 32 ratings. The average price target is $85.62, suggesting a 52.97% upside from current levels.
Block offers payment tools, analytics, and hardware solutions that enable sellers to accept card transactions. The company also assists merchants in expediting fund settlements.
