Overview
- Headcount will drop from over 10,000 to just under 6,000, with employees notified Thursday and the reduction slated to finish by the end of the second quarter of fiscal 2026.
- Block expects $450 million to $500 million in restructuring charges tied to the layoffs.
- Affected staff are set to receive 20 weeks of pay plus one week per year of tenure, equity vesting through the end of May, six months of health coverage, company devices, and $5,000 in transition support.
- The company reported 2025 gross profit of about $10.36 billion, up roughly 17% year over year, and highlighted internal AI efforts including an agent known as “Goose.”
- Shares jumped roughly 20% to 27% in after-hours trading, and Dorsey predicted many companies will make similar changes as some observers voiced skepticism that AI fully explains the scale of the cuts.