Block lays off 931 employees
Block has laid off 931 employees, about 8% of its workforce, for strategic and performance reasons. The changes also include the closure of 748 open positions. Dorsey ruled out financial motivations or the use of AI for the layoffs.
Block recently announced the layoff of 931 people, about 8% of its workforce, through an email from co-founder and CEO Jack Dorsey. Dorsey communicated that the company is making organizational changes, including eliminating roles and starting a consultation process in countries where necessary. These changes are part of a broader strategy to improve performance and simplify the company’s hierarchical structure.
The layoffs are divided into three main categories. The first category involves 391 people laid off for strategic reasons. The second, the largest, involves 460 employees laid off for performance reasons, specifically those who received low ratings on internal performance metrics. Lastly, 80 managers are being laid off to flatten the company's hierarchy, while 193 managers will be moved to individual contributor roles. Dorsey emphasized that these layoffs are not motivated by financial reasons or the intention to replace workers with artificial intelligence.
In addition to the layoffs, Block has decided to close 748 open positions, except for those already in the offer stage, critical operational roles, and key leadership positions. Dorsey clarified that the decisions are not aimed at achieving specific financial targets but rather at responding to strategic needs and improving performance. He also explained that the company needs to move quickly to address changes in the industry.
Block previously faced significant layoffs in January 2024, when it cut about 1,000 employees. Currently, the company has around 11,300 employees worldwide. Dorsey expressed gratitude towards those leaving the company, acknowledging their contributions to Block's growth up to this point. He promised that the company will continue to work on increasing value for customers and shareholders, including the departing employees.
