Block Lays Off 1,100 Employees as Dorsey Refocuses on Bitcoin and AI

Block Inc., the fintech firm behind Cash App and Square, is laying off approximately 1,100 employees as part of a strategic reset led by CEO Jack Dorsey. 

Rather than a simple cost-cutting exercise, the move reflects a sharper focus on Bitcoin infrastructure, decentralised mining, and AI-powered automation. 

With crypto markets maturing and AI reshaping fintech, Block is positioning itself for a leaner but more technologically concentrated future.

Key Takeaways

• Block is reducing its workforce by around 10% to sharpen operational efficiency

• Bitcoin mining infrastructure and AI automation are now top strategic priorities

• The market responded positively, with Block shares rising nearly 5%

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What Is Happening at Block Inc.?

The layoffs impact roughly 10% of Block’s global workforce, reducing headcount from around 11,000 employees. According to internal communications, the decision followed Block’s annual performance review process and affected roles across multiple divisions, including Cash App, Square, and core platform teams.

Importantly, Block has not framed these cuts as emergency cost reductions. Instead, leadership described them as a way to improve accountability and efficiency under its internal Rule of 40 framework, a metric balancing revenue growth and profit margins commonly used in high-growth technology firms.

Notifications have already been sent to affected staff, and the restructuring is largely complete. From an investor’s perspective, the reaction was immediate: 

Block’s stock price rose by nearly 5% following the announcement, suggesting confidence in the company’s strategic direction despite the human cost of the decision.

Read Also: How to Buy Block Buster Tech Inc (BBTF)

Why Bitcoin and AI Are Now the Priority

Jack Dorsey has never been shy about his belief in Bitcoin, and this restructuring makes that commitment unmistakably clear. One of Block’s fastest-growing focus areas is Proto, its Bitcoin mining and hardware division.

Block is currently expanding beyond chip development into full Bitcoin mining systems, following the release of its advanced 3-nanometre mining chip. 

The aim is to support decentralised mining and reduce reliance on a handful of dominant hardware manufacturers, a long-standing concern within the Bitcoin ecosystem.

At the same time, artificial intelligence is becoming central to how Block operates internally. The company’s Goose AI project is designed to automate workflows, improve customer support, and enhance risk management across both Square and Cash App. 

By tightening integration between its platforms, Block hopes to do more with fewer resources while improving user experience.

This strategy builds on earlier restructurings in 2024 and 2025, during which Block streamlined teams and exited lower-priority initiatives. 

The current layoffs appear to be the final step in aligning the organisation with its long-term technological vision.

Read Also: 2026 Crypto Market Forecast: Insight from 21Shares Report

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Conclusion

Block’s decision to lay off 1,100 employees is undoubtedly difficult, but it highlights a broader shift taking place across fintech and technology. 

Companies are becoming leaner, more focused, and increasingly driven by AI and core infrastructure rather than expansive headcount growth.

With approximately 8,800 BTC on its balance sheet, recently valued at around $625 million, Block is already deeply embedded in the crypto economy. 

Its upcoming Q4 financial report, scheduled for 26 February 2026, will offer further insight into how this strategic refocus is translating into financial performance.

For crypto traders and long-term investors alike, Block’s renewed commitment to Bitcoin mining and AI automation is worth watching closely, particularly in a post-halving market where efficiency and scale matter more than ever.

FAQ

What caused Block to lay off 1,100 employees?

The layoffs followed an annual performance review and were aimed at improving efficiency and accountability rather than emergency cost-cutting.

How much of Block’s workforce was affected?

Around 10% of employees were laid off, reducing the workforce from roughly 11,000 people.

Why is Jack Dorsey focusing so heavily on Bitcoin?

Dorsey sees Bitcoin as foundational financial infrastructure and is investing in decentralised mining hardware and long-term network resilience.

What role does AI play in Block’s strategy?

AI is being used to automate workflows, improve customer support, and streamline operations through internal projects like Goose.

How did the market react to the layoffs?

Block’s share price rose nearly 5%, indicating investor confidence in the company’s strategic direction.

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