Block Inc.'s Restructuring Strategy: Jack Dorsey Downsizes to Innovate

The payment company Block Inc., led by founder Jack Dorsey, is undergoing a significant organizational transformation that will involve about 10% of its workforce. As reported by Bloomberg, this initiative is part of a broad review of annual performance and represents a crucial step toward operational optimization. With just under 11,000 employees on staff as of November, Block Inc. aims to streamline processes to better align its product divisions and accelerate growth in new strategic areas.

Strategic Reorganization and Service Integration

The organizational downsizing is part of a broader platform transformation. Jack Dorsey and his team are working to more closely integrate Cash App, the peer-to-peer payment service, with Square, the division dedicated to merchants. At the same time, Block Inc. is expanding its portfolio with innovative initiatives: Proto, the division focused on Bitcoin mining, and Goose, an artificial intelligence project still in development. These changes reflect the company’s ambition to position itself as a comprehensive ecosystem of financial and technological services.

Significant Growth of Cash App and Square Despite Changes

Despite the uncertainty surrounding the restructuring, Block Inc. continues to show a solid growth trajectory. In the previous quarter, the company reported a net income of $461.5 million on $6.11 billion in revenue. Cash App led the growth with a 24% increase, while Square saw a 9% rise, although the stock experienced some correction after the earnings release due to metrics that did not fully meet Wall Street expectations. Block’s shares still gained about 5% last Friday, according to Google Finance.

Bitcoin Remains a Pillar in Block’s Diversification

The Bitcoin division continues to be a significant source of revenue for Block Inc. In the third quarter, the sector generated approximately $1.97 billion in revenue, down from $2.4 billion the previous year. As of the end of September, Block held 8,780 BTC, valued at over $1 billion, although the company recorded a quarterly valuation loss of $59 million. Additionally, last November, Square launched a Bitcoin payment option for merchants, allowing them to accept BTC directly at point-of-sale terminals, completing the payment and wallet service ecosystem.

Financial Results and Market Outlook

Block Inc. is expected to release its fourth-quarter results on February 26, as reported by Bloomberg. Analysts forecast an adjusted profit of approximately $403 million, equivalent to 68 cents per share, with revenues estimated around $6.25 billion. Currently, more than four million vendors in eight countries use Square’s services, providing a solid base for continued growth. Jack Dorsey’s strategy of streamlining the organization while maintaining innovation appears aimed at creating conditions for Block Inc. to emerge as a leader in integrated payments and blockchain services.