Layoffs, firm shutdowns, and related cut-offs are not a new phenomenon in the global economy. In times of broader crisis, several firms have laid off huge numbers of employees, and the crypto sector is no exception. The latest news of Jack Dorsey-associated fintech firm Block’s plans to cut up to 10% of its workforce is yet another significant story.
Block to reduce workforce as crypto sees frequent layoffs
Block Inc. is a US-based financial technology company, co-founded by Jack Dorsey. The company is better known for products such as Square for payments, Afterpay (a Buy Now, Pay Later service), and Cash App for peer-to-peer payments.
Block’s 10% workforce reduction will impact nearly 1,000 employees. The firm’s move for layoffs stems from annual performance evaluations. Block will plan the continuation of certain job roles and the removal of others based on the evaluations.
Block’s layoff plans could also be connected to the reasons why other crypto/fintech firms are reducing their workforce. Operational costs, lack of progress in products like Square, and increased competition between similar financial technology firms have led Block to look into trimming its workforce.
However, there could be broader reasons why several platforms plan to reduce their workforce.
Why are several crypto and fintech firms reducing their workforce?
Market downturn: Crypto is currently going through difficult times, as the market has fallen signficantly since the October 2025 highs. This slump has hit multiple firms, especially the ones with trading or payment services. When the price goes down, there will be fewer investment or trading activities. This. in turn, affects the fees and subscriptions that the platforms earn.
Focus on profitability: Many firms that hired a lot of employees during the launch time are gradually reducing their workforce, as they shift their focus to realistic business performance. In other words, they are eyeing sustainable and profitable businesses
Geopolitical tension and macroeconomic factors: These aspects can lead crypto and fintech firms to reduce costs and restructure their operations. For instance, some reports show that the release of the Epstein files might have impacted the crypto market price and thereby fintech firms. Jeffrey Epstein, the financier, has reportedly contributed to institutions that supported Bitcoin’s growth.
Besides, Epstein had financially contributed to multiple fintech firms. Although there is no clear evidence for a connection between the Epstein files and workforce reductions by firms, there are social media debates over the topic.
Geopolitical tensions, including global trade tensions and tariffs, have also worsened the crypto price and crypto layoffs. US-Europe and US-China disputes over trade tariffs have impacted the market sentiment and led to dim global economic growth.
Structural alignment: This is a factor that most firms explicitly point out, although the core reasons could be any of the reasons mentioned above. Firms reorganize their departments, reduce the number of employees, cut costs, and adopt a restructured approach.
Last week, crypto exchange Gemini announced its plans to lay off 25% of employees, as part of moving its focus more into the US. This will stop its operations in the UK, Australia, and the European Union.
Crypto custody startup Entropy declared that it is winding down its operations following multiple layoffs. The platform could not scale its business model due to weak funding, which resulted in a shutdown.
Back in 2025, the Web3 platform DappRadar also announced it would cease operations as financial unsustainability engulfed the company.
Finance expert Robert Sterling stated that many business leaders cite reasons of layoffs due to ‘right-sizing.’ “Making sure corporate overhead is commensurate with growth, accretive to earnings, and generating a positive return on investment.”
He shared his opinion, referring to Amazon, Microsoft, Facebook, and other fintech firms, which announced their layoffs in late 2025.
