- According to regulatory filings the company said it currently estimates that it will incur charges of approximately $450 million to $500 million in connection with the workforce reduction.
- The company expects that the majority of the restructuring charges will be incurred in the first quarter of fiscal 2026.
- Block on Thursday reported a revenue of $6.25 billion during its fourth quarter, which was below analysts’ estimate of $6.32 billion, as per data from fiscal.ai.
Shares of Jack Dorsey led Block said on Thursday it will lay off more than 4000 people from its 10,000 people workforce, sending shares up 20% in extended hours of trading on Thursday.
“We're reducing Block by nearly half, from over 10,000 people to just under 6,000, which means that over 4,000 people are being asked to leave or entering into consultation,” Jack Dorsey, Block’s co-founder and CEO, wrote in a letter to shareholders.
Dorsey said that Intelligence tools have changed what it means to build and run a company and Block is already seeing it internally. A significantly smaller team, using the tools the company is building, can do more and do it better, he said.
Charges
According to regulatory filings, the company said it currently estimates that it will incur charges of approximately $450 million to $500 million in connection with the workforce reduction, consisting primarily of cash expenditures for notice period and severance payments, employee benefits, and related costs as well as non-cash expenses related to vesting of share-based awards.
The company expects that the majority of the restructuring charges will be incurred in the first quarter of fiscal 2026, and that the execution of the plan will be substantially complete by the end of the second quarter of fiscal 2026.
Results
Block on Thursday reported a revenue of $6.25 billion during its fourth quarter, which was below analysts’ estimate of $6.32 billion, as per data from fiscal.ai.
Its adjusted profit per share of $0.65 also fell short of expectations of $0.67 per share.
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