Block (XYZ) Surges 25% After Raising Profit Outlook

"Today we're making one of the hardest decisions in the history of our company. We're reducing our organization by nearly half. We considered making gradual cuts but opted for a single reduction to avoid prolonged uncertainty."

"Dorsey said internal 'intelligence tools' are reshaping the company's structure. Block has invested in AI systems, including a proprietary tool known as Goose, to integrate across the business and enable faster product development and team operations."

"Block said affected employees will receive 20 weeks of salary plus one week per year of tenure, equity vested through the end of May, six months of health coverage, their corporate devices and $5,000 in transition support."

Block, Inc. announced a major workforce reduction of more than 4,000 employees, shrinking headcount from over 10,000 to just under 6,000. CEO Jack Dorsey stated this restructuring reflects how the company builds products and operates teams while integrating internal AI tools across the business. The company chose a single reduction rather than gradual cuts to avoid prolonged uncertainty. Affected employees receive 20 weeks of salary plus one week per year of tenure, equity vesting through May, six months of health coverage, corporate devices, and $5,000 transition support. Block reported strong financial performance with gross profit of $10.36 billion, up 17% year-over-year, and raised full-year guidance. Stock shares surged 25% following the announcement.

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