Block plans to lay off up to 10% of its workforce as Tether expands globally, highlighting contrasting strategies amid mixed financial results.
Block, the fintech company co-founded by Jack Dorsey, is set to reduce its workforce by up to 10% as part of a significant restructuring initiative. This decision comes on the heels of mixed financial results and follows two previous rounds of layoffs in recent years.
According to sources, the upcoming layoffs will impact various divisions and are tied to the outcomes of the company's annual performance review, which wraps up at the end of February. In total, Block has laid off nearly 2,000 employees over the last two years, including 931 in March 2025 and around 1,000 in January 2024.
Since 2024, Block has been evolving its business model, merging Cash App and Square and pivoting towards Bitcoin mining. The closure of its decentralized division TBD and a decrease in investments in Tidal have been part of this transition. Additionally, Block is developing an AI service to improve operations.
Last November, Block announced a financial strategy aiming for an average annual gross profit growth of 15% through 2028, with a target of $11.98 billion in gross profit by 2026. The company has also expanded its share buyback program to $5 billion, which resulted in an 8% increase in stock prices at the time.
Financial Performance
Block's financial performance has shown variability; while the second quarter saw a 14% rise in gross profit, the third quarter fell short of expectations, with revenue reported at $6.11 billion against a forecast of $6.34 billion. This led to a nearly 10% decline in stock prices after hours.
In the past year, Block's shares have dropped by approximately 37%, with a 13% decline since January. On the last trading day, the stock saw a slight recovery, closing at $55.97, up 4.85%.
These workforce changes come amid a broader trend of job cuts in the U.S., with January 2025 recording the highest number of announced layoffs for the start of the year since 2009. Block's fourth-quarter results, due on February 26, will provide insight into whether the restructuring has successfully improved margins.
Tether's Growth Amid Block's Cuts
In contrast to Block's downsizing, Tether, the issuer of the USDT stablecoin, is actively expanding its workforce and operations globally. Tether is investing its growing profits into hiring, technology development, and strategic investments, as reported by the Financial Times.
The company currently employs 300 people and plans to add 150 more specialists within the next 18 months, focusing on developers and other key roles. Tether is also seeking talent in diverse areas, including AI content creators in Italy and regulatory experts in Brazil and Ghana.
Strategic Investments
Tether's expansion supports the growth of USDT's market capitalization, which has surged from $140 billion to $185 billion over the past year. At a recent conference, CEO Paolo Ardoino introduced the idea of a "freedom tech stack," merging finance, communications, AI, and energy.
The company has a diverse investment portfolio ranging from agricultural ventures in South America to its stake in the Italian football club Juventus. Notably, Tether invested $775 million in the video hosting platform Rumble and integrated a non-custodial crypto wallet into the platform last month.
Regulatory Challenges
As Tether navigates the competitive landscape, it faces challenges from public company Circle and increasing regulatory scrutiny regarding stablecoin compliance and reserves. The company aims to establish a footprint in regions outside the U.S., including the Abu Dhabi Global Market. Tether has also invested $150 million in Gold.com to back digital assets with physical gold and $100 million in Anchorage Digital to strengthen U.S. regulatory ties.
In July 2025, Block entered the S&P 500 and announced its acceptance of Bitcoin payments, marking a significant milestone in its evolution.
