The stock of Block (XYZ) is up 20% after the financial technology (fintech) company announced plans to layoff 4,000 employees, or about 40% of its workforce.
Block, which had 10,000 employees at the end of 2025, said that the job cuts will position the payments company “for our next phase of long-term growth.”
In a news release, Block added that it is able to slash its workforce so dramatically due to efficiency gains it has achieved using “intelligence tools.”
Other companies such as Pinterest (PINS) and CrowdStrike (CRWD) have also recently announced job cuts due to artificial intelligence (A.I.) reshaping their operations.
Block announced the sweeping layoffs along with its fourth-quarter 2025 financial results.
The company behind the popular Cash App reported earnings per share (EPS) of $0.65 U.S. and revenue of $6.25 billion U.S.
Wall Street had forecast a profit of $0.65 U.S. a share and $6.24 billion U.S. in sales from Block.
Looking ahead, Block said it expects earnings per share (EPS) of $3.66 U.S. for all of this year, ahead of analysts’ expectation for $3.22 U.S. a share in earnings.
As a result of the workforce reduction, Block expects to incur charges of $450 million U.S. to $500 million U.S., consisting primarily of severance pay to impacted employees.
Before today (Feb. 27), XYZ stock had declined 76% over the last five years to trade at $54.53 U.S. per share.
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