Block Announces Q4 Earnings, 40% Workforce Cut Boosts Shares 23%
Block Inc reported Q4 adjusted EPS of $0.65 in line with estimates and revenue of $6.25 billion, marginally below consensus, while unveiling plans to cut over 40% of its workforce—eliminating more than 4,000 roles. Shares jumped approximately 23% in after-hours trading on the combined earnings and cost-cutting announcement.
1. Q4 Financial Performance
Block Inc delivered fourth-quarter adjusted EPS of $0.65, meeting analyst forecasts, and generated $6.25 billion in revenue, slightly under the $6.28 billion consensus. The revenue performance reflected steady growth in Cash App transactions offset by softer Seller services demand.
2. Workforce Reduction and Strategic Rationale
Management announced a plan to cut over 40% of its global workforce, reducing more than 4,000 positions to streamline operations and accelerate its shift toward AI-enabled payment and finance solutions.
3. Market Reaction
Shares rose about 5% during regular trading and surged 23% in after-hours sessions as investors cheered the combination of in-line earnings and aggressive cost-cutting measures aimed at improving profitability.