Block Cuts Nearly Half Workforce, Targets $2M Profit per Employee, Shares Surge 15%
Block cut nearly half its workforce, citing AI-driven efficiency, and targeted $2 million gross profit per employee, triggering a 15% share rally. Thirty-five analysts rate the stock Moderate Buy with an average price target of $81.50.
1. Workforce Reduction and AI Strategy
Block announced plans to cut nearly half its workforce after tripling headcount since 2019, with co-founder Jack Dorsey framing the move as a proactive efficiency reset powered by artificial intelligence. The company now aims to generate over $2 million in gross profit per employee, a fourfold increase from pre-pandemic levels, and investors responded by sending shares up 15% in one session.
2. Analyst Consensus and Price Target
Thirty-five analysts covering Block maintain a consensus Moderate Buy rating and have set an average price target of $81.50, reflecting optimism about the company’s leaner cost structure and AI-driven productivity gains despite a 40% share decline since early 2025.