Block, Inc. shares rise over 20%, currently trading at $65.82

Block, Inc. shares rise over 20%, currently trading at $65.82

Block, Inc. Shares Rise Over 20% Amid Workforce Reduction and AI Integration
February 27, 2026

Block, Inc. (XYZ.N) shares surged more than 20% in premarket trading on February 27, 2026, reaching $65.82, following the company's announcement of a significant workforce reduction and strategic shift toward artificial intelligence (AI) integration. The fintech company, formerly known as Square, plans to cut nearly half its workforce as part of an operational overhaul aimed at embedding AI tools across its business.

The layoffs, described as the most visible sign of the U.S. fintech industry's adaptation to AI, reflect CEO Jack Dorsey's emphasis on leveraging automation to improve efficiency. Dorsey warned that many companies are "late" to recognize AI's transformative potential. Analysts noted the move combines cost-cutting with a focus on higher-return investments in growth and free cash flow (FCF).

Block's workforce had expanded from approximately 3,800 employees in 2019 to over 10,000 by 2025, driven by pandemic-era demand for digital payments and buy-now-pay-later services. However, rising competition in its core segments prompted the restructuring. The reduction in force (RIF) brings headcount closer to pre-pandemic levels, positioning Block to outperform peers like Visa in gross profit per employee.

Economists at Goldman Sachs estimate AI displaced 5,000–10,000 jobs monthly in 2025 across industries most exposed to automation. While the cuts have sparked concerns about job market impacts, analysts at Evercore ISI and JPMorgan framed the move as a necessary step to streamline operations and enhance profitability.

Block's stock performance contrasts with recent volatility in the tech sector, as investors weigh the long-term benefits of AI adoption against near-term challenges in implementation and competition. The company's strategy underscores a broader trend of firms balancing automation-driven efficiency gains with workforce adjustments in an evolving economic landscape.

(Yahoo Finance): Yahoo Finance, (Reuters): Reuters.