Fintech company Block is offering laid-off employees in the US at least 60 days of pay, additional severance based on tenure and a one-time $5,000 transition payment as part of its latest workforce reduction exercise.
According to an internal FAQ document reviewed by _Business Insider,_ affected employees are eligible for at least seven weeks of base pay, with an additional week for every year of service at the company.
Employees who sign the separation agreement will receive another 30 days of pay without having to work, taking the total payment period to 90 days. The package also includes three months of COBRA healthcare premium coverage for employees and their enrolled dependents.
In addition, eligible employees will receive a one-time payment of $5,000 towards transition assistance. Those who were due to receive a retention bonus in April 2027 will be paid a prorated amount in its place.
The benefits are conditional on employees signing and complying with the separation agreement. Workers outside the US will receive packages based on their respective locations.
The latest package differs from the terms offered during Block’s February 2026 layoffs, when the company cut more than 40 per cent of its workforce. At the time, employees were offered 20 weeks of salary, plus an additional week for every year of service, along with six months of healthcare coverage. The $5,000 transition payment was included in both rounds.
Block has not disclosed the exact number of employees affected by the latest cuts. The company informed some employees on Wednesday that their roles were being eliminated.
The latest restructuring comes after the company reported better-than-expected third-quarter profits, supported by growth in its Square seller-services business and Cash App consumer financial services platform.
Unlike the February workforce reduction, which CEO Jack Dorsey had partly linked to advances in AI, the latest communication to employees referred to using better tools for routine tasks and shifting employee time towards complex cases and decision-making. It did not explicitly cite AI as the reason for the cuts.
