Block (XYZ) Stock Jumps 5% Despite Plans to Cut 10% of Workforce

TLDR

• Block (XYZ) is considering cutting up to 10% of its workforce, affecting hundreds of employees out of roughly 12,000 workers as part of an annual review and business overhaul.
• XYZ shares rose 4.85% Friday to $55.97 despite falling 14% year-to-date and over 20% in 2025, with earnings scheduled for Feb. 26.
• Analysts expect adjusted earnings of $403 million ($0.68 per share) on revenue of $6.25 billion when Block reports fourth-quarter results.
• The company is restructuring to link Cash App more closely with Square while expanding into Bitcoin mining through Proto and AI tool Goose.
• Block aims to reach nearly $12 billion in gross profit by 2026 with mid-teens growth through 2028, maintaining its 12,000-employee cap from 2023.

Block is reviewing up to 10% of its workforce as part of a broader business reset. Hundreds of employees have been told their jobs are at risk during the company’s annual review cycle.

Block, Inc., XYZ

The reviews are running through late February. The Oakland, California-based company employs roughly 12,000 workers, though it had fewer than 11,000 as of November.

XYZ shares closed up 4.85% Friday at $55.97. The stock has fallen 14% year-to-date after dropping more than 20% in 2025.

Block is set to report fourth-quarter earnings after market close on Feb. 26. Analysts expect adjusted earnings of $403 million, or $0.68 per share, on revenue of $6.25 billion.

The company posted adjusted EPS of 71 cents in the fourth quarter of 2024. CEO Jack Dorsey runs the payments firm that owns Cash App and Square.

Restructuring Strategy

Block has been reshaping its teams since 2024. The company is working to run leaner and align its core units.

The firm is linking Cash App more closely with Square, its main seller service arm. Both platforms allow individuals and businesses to transact in bitcoin.

Block is also expanding into new areas. The company operates Bitcoin mining unit Proto and AI tool Goose.

Its Bitkey unit offers a bitcoin self-custody hardware wallet. The Spiral unit builds and funds open-source projects for bitcoin adoption.

The job cuts are spread across multiple teams. Managers are carrying out year-end reviews as part of the restructuring process.

Financial Targets and Performance

Block shared growth targets at its investor day last year. The company aims to reach nearly $12 billion in gross profit by 2026.

The firm projects mid-teens growth through 2028. Block introduced a 12,000-employee cap in 2023 and reiterated the commitment in its third-quarter earnings report.

The company joined the S&P 500 index in July. The S&P 500 has risen 1.27% this year while XYZ shares fell 14%.

Wall Street maintains a Strong Buy consensus on Block stock based on 32 analyst ratings. The average price target sits at $85.62, implying 52.97% upside from current levels.

Block provides payment tools, analytics, and hardware that help sellers accept card transactions. The company also helps merchants settle funds quickly.

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