Jack Dorsey’s Block Trims Jobs Again While Betting on Bitcoin Mining and AI
Block Inc. has launched a fresh round of layoffs as the fintech company accelerates a broader overhaul aimed at reshaping its business for 2026.
Key Takeaways
- Block is cutting up to 10% of its workforce, or around 1,100 employees, as part of a broader restructuring tied to its 2026 strategy rather than a one-time cost move.
- The layoffs are being carried out through ongoing performance reviews, signaling a push for leaner operations and fewer overlapping roles across teams.
- Management is prioritizing tighter integration between Square and Cash App, while shifting resources toward Bitcoin mining and internal AI tools.
The move comes as Jack Dorsey pushes for a tighter operating model focused on efficiency, integration, and long-term profitability.
As of February 8, 2026, Block is expected to reduce its headcount by up to 10%, impacting roughly 1,100 employees. Unlike previous rounds, the reductions are being implemented through the company’s annual performance review process, which runs through late February. This approach signals a structural reset rather than a sudden cost-cutting response.
Push for a Leaner Operating Model
Internally, the layoffs are framed as part of an effort to simplify decision-making and eliminate overlapping roles. Leadership has emphasized building a “leaner” organization capable of moving faster while maintaining focus on fewer strategic priorities across engineering, product, and operations.
A central pillar of the restructuring is the tighter integration between Square’s merchant ecosystem and the Cash App consumer platform. At Block Inc., management sees deeper technical and operational links between the two as key to unlocking efficiencies and strengthening its payments network across both businesses.
Capital Shifts Toward Bitcoin and AI
Alongside the cuts, Block is reallocating resources toward newer initiatives. These include its Bitcoin mining venture Proto and internal AI development under the Goose project. Both are viewed as long-term bets that could differentiate Block as competition intensifies in fintech and digital payments.
This is the latest in a series of workforce reductions under Dorsey’s leadership. In March 2025, Block cut about 8% of its staff to flatten management layers, following another reduction of roughly 1,000 roles in early 2024. Together, the moves highlight a sustained effort to realign the company’s structure with its strategy.
Earnings and Investor Focus
Block is set to report its Q4 2025 earnings on February 26, after market close. Analysts expect revenue of around $6.25 billion and adjusted EPS of $0.68. Looking ahead, management is targeting close to $12 billion in gross profit for 2026 and aiming to meet the “Rule of 40,” balancing growth with profitability. Wall Street sentiment remains broadly bullish, suggesting investors are largely supportive of the restructuring despite near-term disruption.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
