Dorsey’s Block slashes workforce 40% to embrace AI-native future, shares gain

SelfRugger

2026-04-10 01:47:36

Dorsey’s Block slashes workforce 40% to embrace AI-native future, shares gain

Luke Juricic

Fri, February 27, 2026 at 6:53 AM GMT+9 1 min read

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XYZ

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Investing.com – Block Inc (NYSE:XYZ) shares soared 22% in after-hours trading Thursday following a robust earnings report and a sweeping structural overhaul, which would eliminate 40% of the company’s workforce. Chief Executive Jack Dorsey announced the company will pivot toward an “intelligence-native” model to drive long-term shareholder value.

The financial technology giant reported fourth-quarter adjusted earnings of $0.65 per share, edging past the $0.64 analyst consensus. Quarterly revenue reached $6.25 billion, slightly trailing the $6.29 billion anticipated by Wall Street.

Gross profit for the period jumped 24% year-over-year to $2.87 billion, fueled by a 33% surge in Cash App performance. The Square ecosystem also showed resilience, with gross payment volume accelerating to 12% growth through late February.

In a candid letter to shareholders, Dorsey detailed a massive reduction in force, cutting the team from over 10,000 employees to fewer than 6,000. “A significantly smaller team, using the tools we’re building, can do more and do it better,” Dorsey wrote regarding the integration of artificial intelligence.

The Chief Executive noted that the move is a proactive response to a rapidly shifting economic landscape for both the company and its customers. “I’d rather get there honestly and on our own terms than be forced into it reactively,” he added.

Management raised its full-year 2026 outlook, now forecasting gross profit of $12.20 billion and adjusted operating income of $3.20 billion. The company expects these structural changes to significantly expand margins and boost adjusted diluted earnings to $3.66 per share.

Dorsey’s Block slashes workforce 40% to embrace AI-native future, shares gain

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