Jack Dorsey’s payments company Block Inc. has begun informing hundreds of employees that their roles could be eliminated during annual performance reviews, as the firm undertakes a wider restructuring effort.
As much as 10% of Block’s workforce may be affected, Bloomberg reported on Sunday, citing people familiar with the matter. The company employed just under 11,000 people as of late November, an executive reportedly said at the time.
The potential layoffs come as Block reshapes its operations following a reorganization launched in 2024 aimed at improving efficiency and aligning its product lines. The company is working to more closely link its peer-to-peer payments platform Cash App with its merchant services arm Square.
At the same time, Block is expanding newer initiatives, including its Bitcoin (BTC) mining division Proto and an artificial intelligence project known as Goose.
Related: Cash App plans to unlock stablecoin transactions ’soon’
Block expected to post $403 million Q4 profit
Block is scheduled to release quarterly earnings on Feb. 26, according to Bloomberg. Analysts expect adjusted profit of about $403 million, or 68 cents per share, on revenue of roughly $6.25 billion for the fourth quarter, per the report.
The company last reported third-quarter net income of $461.5 million on $6.11 billion in revenue. Gross profit rose 18% year over year, driven by 24% growth in Cash App and 9% growth in Square, though the stock fell after the release as some performance metrics missed Wall Street expectations.
For the third quarter, Bitcoin generated about $1.97 billion in revenue, down from $2.4 billion a year earlier but still the company’s second-largest revenue stream. Block held 8,780 BTC worth over $1 billion by the end of September, recording a $59 million quarterly valuation loss.
Related: Jack Dorsey urges tax-free status for ‘everyday’ Bitcoin payments
Square launches Bitcoin payments for merchants
In November last year, Square, the payments platform owned by Block, rolled out a Bitcoin payment option, allowing merchants to accept BTC directly at checkout through its point-of-sale terminals. Sellers can process transactions in multiple ways, including Bitcoin-to-Bitcoin and automatic conversion between Bitcoin and fiat currency.
The launch added on earlier tools that let merchants convert a portion of daily card sales into Bitcoin as part of Square’s broader payment and wallet ecosystem. More than four million sellers across eight countries use Square.
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Cointelegraph by Amin Haqshanas