Block's AI reset signals new earnings phase after cutting 40% of workforce

Block’s spending rise despite 40% workforce cut leaves analysts weighing growth prospects

Block cut 40% of workforce but raises H2 operating expenses from $4.48B to $4.56B, redirecting layoff savings into AI infrastructure and Cash App. Wall Street's skepticism reveals the core tension: whether cost restructuring transitions into real growth or merely cycles efficiency gains into unvalidated infrastructure bets.