Block to Cut 10% of Staff in ‘Performance Based’ Stealth Layoffs

The Lede

Jack Dorsey’s Block Inc. (SQ) is initiating a workforce reduction of up to 10%, approximately 1,100 employees, under the guise of annual performance reviews. According to a report by Bloomberg, the cuts are not a standard mass layoff but are being executed individually as part of a broader restructuring to fund Dorsey’s high-conviction bets on Bitcoin mining and artificial intelligence.

The Execution

Unlike traditional reductions involving company-wide memos and severance packages, Block is leveraging its performance review cycle to trim headcount. Managers are reportedly notifying affected staff now, framing the exits around efficiency rather than financial distress. This tactic often allows corporations to bypass WARN Act notice requirements and reduce severance liabilities.

The reduction targets a workforce that had already shrunk to under 11,000 by late November 2025, down from a previous self-imposed cap of 12,000. This signals that Dorsey’s “efficiency” mandate is intensifying ahead of the company’s Q4 earnings report on February 26.

The Pivot: Proto and Goose

The cuts are financing a strategic pivot. While Block works to unify its fragmented payments ecosystem (merging Square and Cash App teams), capital is being redirected toward two specific internal units:

• Proto: The company’s Bitcoin mining hardware division, which aims to decentralize mining infrastructure.
• Goose: An internal AI project designed to automate engineering and design workflows.

Market Context

Block shares closed Friday at $55.97 (+4.85%), suggesting the market may have priced in the efficiency measures before the Sunday news break. The layoffs underscore a sector-wide trend where fintech majors are abandoning “growth at all costs” for leaner operations centered on high-margin automation and crypto infrastructure.