Block Cuts 4,000 Jobs as Truist Lifts Price Target to $77
Truist upgraded Block to Buy from Hold with a $77 price target, citing mid-to-high single digit EPS upside driven by Cash App profit growth, margin expansion and buybacks. The company announced a 40% workforce reduction, cutting about 4,000 jobs to streamline operations and reduce costs.
1. Analysts Raise Ratings and Targets
Truist upgraded Block from Hold to Buy, raising its price target from $72 to $77 on expectations of mid-to-high single digit EPS upside driven by stronger Cash App gross profit, margin improvement and planned buybacks. Rothschild & Co. also shifted to a Neutral rating from Sell, lifting its target to $55 from $45 based on similar margin and buyback drivers.
2. Major Workforce Reduction and AI Implications
Block announced cutting approximately 4,000 jobs—about 40% of its workforce—to streamline operations and cut expenses as part of a broader restructuring. Industry observers highlight this move as an early indicator of AI-driven disruptions in labor markets, suggesting potential implications for operational capacity and future cost structures.