Block Cuts 10% of Staff as Jack Dorsey Refocuses on Bitcoin and AI

Block, the fintech company formerly known as Square, will reduce its workforce by approximately 1,100 employees, representing around 10% of total headcount.

The move marks a deliberate strategic reset under CEO Jack Dorsey, aimed not at short-term cost relief, but at reshaping the company’s operating model for 2026 and beyond.

Unlike the broad, defensive layoffs seen across tech in 2023–2024, Block’s latest cuts are part of a structural reorganization designed to make the company leaner, more integrated, and more focused on a narrower set of priorities, most notably Bitcoin infrastructure and applied artificial intelligence.

A Shift to “Single-Speed” Operations

Management has described the restructuring as a move toward “single-speed” execution, breaking down internal silos that historically separated Block’s major business lines.

The company is tightening integration between Square and Cash App, which have long operated as semi-independent units. The goal is to create a more unified merchant-to-consumer financial ecosystem, reducing duplicated functions and overlapping product teams.

Rather than large, indiscriminate layoffs, Block is using stricter performance reviews to identify roles deemed redundant, while retaining core engineering and product talent. This approach allows the firm to reduce headcount without weakening its technical backbone.

Capital Reallocated Toward Bitcoin and AI

The workforce reduction frees up resources for two areas Dorsey has consistently emphasized: Bitcoin infrastructure and internal AI tooling.

On the Bitcoin side, Block is accelerating development of its proprietary three-nanometer Bitcoin mining chips, part of a long-term effort to decentralize mining hardware production. The market is currently dominated by a small number of manufacturers, particularly Bitmain, and Block’s strategy aims to reduce concentration risk in the mining ecosystem.

At the same time, the company is expanding internal AI systems to automate customer support, compliance workflows, and software development. These tools are central to maintaining Dorsey’s previously announced hard cap of roughly 12,000 employees while continuing to scale revenue.

Financial Discipline and Market Reaction

From a financial perspective, Block is positioning itself around operational efficiency rather than headcount growth. Management is targeting consistent “Rule of 40” performance, balancing gross profit growth with improving operating margins.

By trimming staff while maintaining investment in high-conviction areas, Block is signaling to markets that it prioritizes disciplined execution over expansion for expansion’s sake. Wall Street has generally responded positively to this approach, viewing the restructuring as a proactive reset rather than a reaction to distress.

Bitcoin’s Bottoming Process May Not Be Complete Yet

Implications for the Crypto Ecosystem

Block’s decision to cut general corporate roles while increasing exposure to Bitcoin mining represents a clear, long-term bet on Bitcoin’s infrastructure layer. Beyond mining, the strategy supports the company’s broader crypto initiatives, including self-custody hardware and decentralized web development.

By focusing on infrastructure rather than speculation, Block is aligning itself with a slower, more capital-intensive vision of crypto adoption, one centered on resilience, self-custody, and reduced reliance on centralized intermediaries.

Bottom Line

Block’s 2026 restructuring is not a retreat, but a recalibration. The company is shedding organizational weight to concentrate on fewer, higher-conviction bets. For Jack Dorsey, that means tighter integration across products, aggressive automation through AI, and a continued commitment to building Bitcoin’s underlying rails, even as the broader tech sector remains cautious.

The layoffs may be painful in the short term, but they underline a clear message: Block is choosing focus over scale, and conviction over optionality.

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