Block Inc

XYZ

Market cap $38.7B

Block's drastic 40% headcount cut is expected to drive higher revenue per employee, with the leaner operations also implying their improved operating efficiency. Combined with the FQ4'25 outperformance/raised FY2026 guidance, it is unsurprising that the market has rewarded the stock with a double-digit rally post-earnings call. This is especially since their growth initiatives have driven improved user acquisition/monetization trends, with it supporting the fintech towards their ambitious 2028 growth targets.

Shares of PayPal and Block are both cheap relative to historic levels, but only one of them commands heavy enthusiasm from analysts.

Seven former Block employees say they were using AI to varying degrees but weren't convinced it would replace them yet. CEO Jack Dorsey's decision to cut the workforce in half came as a shock.

In cutting nearly 40% of its workforce, Block loudly professed that the days of AI taking the jobs of humans has arrived. Jack Dorsey told investors that new "intelligence tools" are changing how companies are built and run.

Sam Vadas talks about her final market takeaways to close a volatile week for tech on Wall Street. Among her top headlines: the widespread layoffs at Block (XYZ) and CoreWeave's (CRWV) strong selling action after earnings.

It was probably one of those moments where you remember where you were when you heard it. Block announced Thursday (Feb. 26) that it will cut roughly 4,000 jobs, or close to 40% of its workforce, as part of a broad restructuring that CEO Jack Dorsey said is aimed at making the company “smaller, faster and more focused” as it integrates artificial intelligence (AI) more deeply into its operations.

Jack Dorsey's fintech company Block announced it was cutting nearly half of its workforce as it bets big on AI. But skeptics say investments in technology may not be the only reason for the layoffs.

Nvidia (NVDA) delivered strong earnings and guidance, but high expectations triggered a 'sell the news' reaction and ongoing valuation concerns. AI infrastructure demand remains robust, yet NVDA faces supply challenges and heightened market sensitivity to any potential shortfall.

Block CEO Jack Dorsey's move to cut nearly half the company's workforce is shining a spotlight on a growing question for corporate America: whether advances in artificial intelligence will ultimately mean fewer workers. Economists, however, question whether such moves signal a broader shift in the labor market or simply reflect company-specific adjustments.

The story behind Block's (XYZ) layoffs has several perspectives, says @Stockstotrade's Tim Bohen. He explains what it means for the greater AI trade and hopes that Block and related tech firms see in cutting back their headcount.