Block Slashes 10% Workforce in Fresh Efficiency Drive

Jack Dorsey’s Block, Inc. (SQ) is cutting approximately 10% of its global workforce, marking the fintech giant’s third major headcount reduction in as many years. The move, reported by Bloomberg and Reuters, targets roughly 1,000 employees and is being executed primarily through annual performance reviews rather than a blanket layoff.

The “Growth at All Costs” Era is Dead

The reduction brings Block’s headcount below the 11,000 mark, reinforcing Dorsey’s mandate to cap the company’s size. Unlike the January 2024 and March 2025 cuts, which eliminated similar numbers, this round explicitly utilizes performance metrics to trim staff. Hundreds of employees have already received notices.

Block’s strategy is clear: churn the bottom decile to maintain “startup-level” velocity. The company, which owns Square, Cash App, and Afterpay, has struggled to reconcile its pandemic-era bloat with post-2022 market realities. Dorsey has previously stated that the company’s workforce growth should not outpace its business growth.

The cuts are not a pivot, but a purge. Dorsey is enforcing a permanent state of leanness.

Bitcoin Infrastructure Impact

For crypto markets, the question is how this impacts Block’s “ecosystem” of Bitcoin products. The company is unique among public fintechs for its direct involvement in Bitcoin hardware via Proto (mining chips) and Bitkey (self-custody wallets). While engineering roles in these capital-intensive divisions are typically insulated, sales and marketing functions often bear the brunt of efficiency drives.

Investors reacted cautiously. Block (SQ) shares traded near $56.50 following the news, down marginally as the market digested the implication of slowing operational expenses versus potential growth headwinds.

Institutional Context

This is part of a broader “Year of Efficiency” that never ended for Big Tech. By embedding layoffs into the performance review cycle, Block is signaling that headcount reduction is now a recurring operational discipline rather than a one-off crisis response. For Bitcoin infrastructure, it suggests Dorsey is prioritizing sustainable burn rates over aggressive, experimental expansion.