Block Cuts 40% Workforce Following 24% Q4 Profit Gain, Boosts 2026 Outlook
Block cut about 40% of its workforce, trimming headcount from over 10,000 to under 6,000 as it adopts an AI-native operating model. Q4 gross profit rose 24% to $2.87B and EPS hit $0.65, driving an 18% raise in 2026 gross profit guidance to $12.2B and operating income forecast to $3.2B.
1. Q4 Financial Results
Block reported Q4 gross profit of $2.87 billion, up 24% year-over-year, with EPS of $0.65 topping consensus estimates. Gross payment volume reached $66.9 billion, driven by 8% year-over-year growth and strong Cash App momentum.
2. Workforce Reduction and AI Strategy
The company announced a 40% workforce reduction, cutting headcount from over 10,000 to under 6,000 as it transitions to an AI-native operating model. Management expects these efficiencies to boost margins and reshape cost structure.
3. 2026 Outlook and Guidance
Block raised its fiscal 2026 gross profit guidance by 18% to $12.2 billion and forecast operating income of $3.2 billion, reflecting anticipated cost savings and business momentum. For Q1, gross profit guidance was lifted 22% to $2.8 billion with operating income projected at $600 million.