Block Plans 10% Staff Cuts After Square Growth Drops to 9%
Block plans to cut up to 10% of its workforce after its Square segment’s growth slowed to 9%, contributing to a third-quarter profit miss. Citi cut its Block price target from $105 to $85 and projects a 19% gross profit increase ahead of Q4 earnings.
1. Planned Workforce Reduction
Block is preparing to reduce headcount by up to 10% during annual performance reviews as part of a broader cost-cutting effort designed to bolster profitability.
2. Third-Quarter Performance
Growth in the Square segment decelerated to 9%, leading Block to miss analysts’ third-quarter profit expectations and intensifying pressure on margins.
3. Citi Revises Price Target
Citi adjusted its price target for Block down to $85 from $105, maintaining a Buy rating while forecasting a 19% increase in gross profit.
4. Upcoming Fourth-Quarter Results
Investors will focus on Block’s Q4 earnings report scheduled for February 26 for signs of revenue recovery and margin improvement.