Block slashes workforce amid AI pivot, record profit

Financial services giant Block (ASX:XYZ) has announced a radical restructuring alongside record financial results for 2025.

The company reported a 17% surge in annual gross profit, reaching US$10.36 billion, while hitting its "Rule of 40" target in the final quarter.

Despite the robust profitability, management revealed plans to transition into a "smaller, faster, intelligence-native" organisation—a strategy that involves slashing its workforce by 40%.

Approximately 4,000 employees will be made redundant as Block scales down from 10,000 staff to just under 6,000.

The downsizing reflects a deeper integration of artificial intelligence across product development, risk management, and general operations.

Leadership emphasised that the decision was driven by the compounding efficiency of AI, stating that a leaner team equipped with advanced internal tools can outperform larger traditional structures.

Investors responded with overwhelming optimism to the aggressive cost-cutting and AI-centric pivot; shares in the New York-listed firm surged 19% in after-hours trading following the announcement.

By embedding intelligence tools into the core of its business model, Block aims to sustain long-term growth and exceed the financial targets outlined at its recent investor day.