Block, Inc. shares rise over 24% pre-market, currently trading at $67.80.

Block, Inc. shares rise over 24% pre-market, currently trading at $67.80.

Block, Inc. Shares Surge Over 24% Pre-Market Following Major Workforce Reduction and Earnings Release

Block, Inc. (NYSE: XYZ) shares surged more than 24% in pre-market trading on February 27, 2026, reaching $67.80, following the company's announcement of a significant workforce reduction and the release of fourth-quarter financial results. The stock's sharp rise came after the payment and financial technology firm disclosed plans to cut approximately 4,000 jobs—nearly half its workforce—to streamline operations and accelerate AI-driven efficiency.

CEO Jack Dorsey described the decision as "very difficult" but necessary to position Block for long-term growth. The layoffs, affecting around 40% of its 10,000-strong workforce, aim to reduce costs and enable smaller teams to leverage artificial intelligence tools for automation.

CFO Amrita Ahuja emphasized that the restructuring is intended to prepare the company for "its next phase of growth," aligning with broader industry trends toward AI adoption.

Block reported adjusted earnings of $0.65 per share and revenue of $6.25 billion for Q4 2025, meeting analyst expectations. The company also provided full-year 2026 earnings guidance of $3.66 per share, exceeding forecasts. Despite the job cuts, Block expects to incur $450–$500 million in restructuring costs, primarily related to severance and benefits, with most expenses recognized in Q1 2026.

The stock's post-announcement rally reflects investor optimism about cost savings and operational efficiency, though the move follows a year of volatility, with shares down over 16% in 2025. Dorsey noted that the abrupt workforce reduction—rather than a gradual approach—was designed to minimize repeated morale impacts.

Block's stock closed at $54.60 on February 26, having fallen in recent months, but its pre-market performance signals renewed confidence in the company's strategic shift toward AI and streamlined operations.