Block Lays Off Nearly Half of Its Employees and Ends Cryptocurrency Project

American fintech company Block, owner of the payment platforms Cash App and Square, announced on Wednesday, February 26, 2026, drastic layoffs affecting nearly half of its workforce. The restructuring announcement came a day after the company confirmed it did not receive the expected deposit banking license in Utah. This decision by the financial regulator cast significant doubt on Block's further ambitions to offer full banking services, which were a key element of its growth strategy. The company founded by Jack Dorsey also plans to shut down its experimental 'Other bets' division, which focused on cryptocurrency projects, to concentrate resources on its core, profitable business. At the same time, other significant moves occurred in the entertainment and technology markets. Streaming service Netflix withdrew from the race to acquire media conglomerate Warner Bros. Discovery, without submitting an official offer. The decision was made after a preliminary analysis showed the transaction would be too costly and operationally complex. Netflix shares reacted to this news with an increase in after-hours trading, suggesting investors positively assessed the withdrawal from a potentially risky acquisition. Technology companies also face ethical and strategic choices. Anthropic, the creator of advanced artificial intelligence models, rejected an offer from the U.S. Department of Defense regarding cooperation on military AI research projects, highlighting ongoing tensions between the development of civilian technologies and their potential military applications. Block, formerly Square, was one of the key companies that democratized finance for small businesses and individuals by introducing smartphone card readers. Its later expansion into the cryptocurrency area reflected a broader trend in the fintech sector aiming to integrate traditional and decentralized finance. In financial markets, concerns are also growing regarding the private credit sector, where the first signs of cracks are being observed. Credit risk in this segment is rising, especially in London, which may herald difficulties for many investment funds heavily involved in this market in search of higher returns. The CEO of Monroe Capital warned of a 'herd mentality' among private credit investors, suggesting that some capital is flowing there without proper risk analysis. Meanwhile, in the stock market, beyond Netflix's move, attention was also drawn to the decline in Block's share price, as well as Nvidia's, whose forecasts somewhat disappointed investors hungry for further breakthroughs in artificial intelligence.