Fintech company Block has laid off approximately 931 employees, which is about 8% of its workforce, according to a message from the company that was obtained by TechCrunch. The announcement was made via email by Block’s co-founder and CEO, Jack Dorsey, informing staff about organizational changes that include the elimination of roles and the initiation of a consultation process in certain countries where required.
These changes are the latest for Block, a financial services giant that owns Cash App and Square and provides mobile payment services for consumers and point-of-sale hardware and software for businesses. In the email, Dorsey outlined that job cuts would affect three areas: strategy, performance, and hierarchy.
The strategy-driven layoffs will impact 391 employees. The largest group affected, comprising 460 individuals, will be cut for performance reasons, specifically targeting those who received a “below” rating or were trending towards it based on the company’s internal performance metrics. The remaining cuts involve 80 managers to streamline the company’s hierarchy to a structure called “innercore+4,” which refers to Dorsey’s direct reports and four layers of direct reporting beyond that. Additionally, 193 managers will transition to individual contributor roles.
Dorsey emphasized that the layoffs were not financially motivated or aimed at replacing employees with artificial intelligence. Instead, the decision relates to evolving strategic needs and efforts to improve performance efficiency.
Furthermore, Block is closing 748 open positions, except for those that have reached the offer stage, are critical operational roles, or are key leadership positions, among others. The company previously underwent significant layoffs in January 2024, cutting around 1,000 jobs. As of December 2024, Block employed approximately 11,300 people worldwide, according to its latest 10K filing. Block did not immediately respond to a request for comment.
The email from Dorsey was shared with the staff and has been slightly modified for clarity. In the communication, Dorsey explained the rationale behind the immediate actions, citing the necessity to adapt quickly to industry changes and improve overall company performance. Dorsey expressed his gratitude to those departing and acknowledged their contributions to the company’s growth.
The story was updated at 4:28 PM on Tuesday to include the full email regarding the layoffs.