There was a wave of heated discussions last week when Block announced massive layoffs — reducing staff from over 10,000 to less than 6,000. The strange part? Shares rose by more than 20% after trading hours.

The numbers look strong on the surface. Last quarter’s profits reached $2.87 billion, a 24% increase, and the Cash App alone jumped by 33%. This added about $6 billion to the company's market value.

But many are skeptical of the official narrative. Jack Dorsey himself admitted that they overhired during the COVID period — three times the number of employees between 2019 and 2022. He said they built two separate company structures instead of one, and these layoffs are now a correction of those mistakes. The new goal? Over $2 million in total profit per employee, roughly four times the efficiency before the pandemic.

Critics pointed out that Block spent $68 million on a single company event last September — almost the annual salaries of 200 employees. There’s also a lot of sarcasm around how such layoffs are always attributed to artificial intelligence, while the reality is more complicated.

The real question: what does this mean for Bitcoin users? Cash App is one of the largest Bitcoin platforms for individuals in the United States. Millions use it to buy, sell, and hold BTC. The company also manages Bitkey, a self-custody Bitcoin wallet, and the Proto division for mining hardware.

Cash App made $1.83 billion in profits last quarter — the main revenue driver for Block. Now, with 40% fewer employees managing the same infrastructure, everyone is watching whether Block will focus more on its Bitcoin strategy or face challenges in maintaining service quality. The layoffs could mean a greater focus on fundamentals, or they could indicate issues with support and development — time will tell.