Fintech company Block, founded by Jack Dorsey (Cash App, Square, Afterpay), is preparing to cut up to 10% of its workforce as part of a major restructuring. This was reported by Bloomberg citing informed sources.

The layoffs will affect employees across various divisions based on the results of an annual performance review, which will conclude at the end of February. This marks the third wave of workforce reductions in the past two years: in March 2025, the company let go of 931 employees, and in January 2024, around 1,000 employees were laid off.

Block has been undergoing continuous transformation since 2024, integrating Cash App and Square. In November 2024, the company shifted its focus to Bitcoin mining, announcing the closure of its decentralized division TBD and reducing investments in the streaming platform Tidal. Simultaneously, the firm is developing an AI service to enhance the efficiency of Goose.

Last November, Block unveiled a three-year financial strategy. The plan aims for an average annual gross profit growth of 15% until 2028, targeting $11.98 billion in 2026. The company also expanded its share buyback program to $5 billion, which boosted stock prices by 8%.

Mixed Results

Block's financial results have been mixed: while the company exceeded expectations in the second quarter with a 14% increase in gross profit, it fell short of forecasts in the third quarter.

Revenue was $6.11 billion compared to the expected $6.34 billion, and adjusted earnings per share were $0.54 instead of $0.63. Investor disappointment led to a nearly 10% drop in stock prices during after-hours trading.

Over the past year, Block's shares have decreased by about 37%, and by 13% since the beginning of January. On Friday, the stock closed with a corrective rise to $55.97 (+4.85%).

Changes within the company occur amid a broader wave of workforce reductions in the U.S. According to Challenger, Gray & Christmas, employers announced 108,435 job cuts in January, a record high for the start of the year since 2009.

Block's fourth-quarter report, scheduled for February 26, will reveal whether the workforce optimization has improved business margins.

Block Cuts Staff, Tether Hires

The issuer of the stablecoin USDT, Tether, is ramping up its international expansion. Growing profits are being directed towards increasing staff, developing technologies, and making strategic investments, reports the Financial Times.

The company's workforce recently reached 300 employees. Over the next year and a half, Tether plans to hire an additional 150 specialists, primarily developers.

The search for talent is not limited to technical positions. According to LinkedIn, the company is looking for AI content creators in Italy, venture partners in the UAE, and regulatory liaison specialists in Ghana and Brazil.

Strategy and Finances

The scaling of the business supports the growth of USDT's market capitalization, which increased from $140 billion to $185 billion over the past year.

At a recent conference in El Salvador, Tether CEO Paolo Ardoino presented the concept of a "freedom tech stack," which integrates finance, communications, artificial intelligence, and energy, according to the publication.

The company's investment portfolio ranges from agriculture in South America to the Italian football club Juventus. The tech sector includes robotics, satellite communications, and AI.

Specifically, Tether invested $775 million in the video hosting platform Rumble, a competitor to YouTube. Last month, the platform integrated a non-custodial crypto wallet.

Competition and Regulation

Tether's activity occurs amid competition with public company Circle and increased regulatory scrutiny regarding compliance standards and stablecoin reserves. The issuer aims to establish a presence in jurisdictions outside the U.S., including the Abu Dhabi Global Market free economic zone.

The company also invested $150 million in Gold.com, enhancing the backing of digital assets with physical gold. Another $100 million was directed to Anchorage Digital to strengthen ties with regulated infrastructure in the U.S.

It is worth noting that in July 2025, Block entered the S&P 500 and announced Bitcoin payments.