Curated and analyzed by the JobGoneToAI team. Original reporting by newsable.asianetnews.com.
Block Announces 40% Workforce Reduction Amid AI Focus and Restructuring
— newsable.asianetnews.com
Key Takeaway
Block has announced a significant workforce reduction of nearly 40% as part of its restructuring efforts, which are linked to a greater focus on artificial intelligence. This move aims to streamline operations and improve efficiency within the company.
From the Original Report
Block (XYZ) shares edged higher on Wednesday morning after analysts upgraded the stock, citing expected upside from Cash App growth and recent workforce reductions aimed at improving margins.
Truist upgraded Block to ‘Buy’ from ‘Hold’ with a price target of $77, up from $72, following the company's recent announcement of a 40% reduction in its workforce. The firm said it saw mid-to-high single-digit upside to Street out-year earnings estimates, driven by gross profit growth in its mobile app service, Cash App,
better-than-expected margin expansion, and share buybacks. According to TheFly, Rothschild & Co Redburn also upgraded Block to ‘Neutral’ from ‘Sell’, raising the price target to $55 from $45. The firm said the market was increasingly viewing Block as a neobank. Block’s stock was up nearly 2% at market open on Wednesday.
On Stockwits, retail sentiment around XYZ remained in the ‘bearish’ zone, while chatter levels around it remained at ‘extremely low’ levels over the past day. The upgrades came after Block announced a nearly 40% workforce reduction last month, as part of a broader effort to streamline operations.
This is an excerpt. Read the full article at newsable.asianetnews.com.
Original Source
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