American fintech firm, Block is letting go over 900 people, that is, about eight per cent of its workforce. The layoffs are apparently not in response to any financial issues or an attempt to replace employees with artificial intelligence (AI). Rather, the job cuts are expected to increase focus on performance and quick action. Consultation process is already underway in countries where needed.
The last round of layoffs happened over a year ago when 1,000 employees were let go. At the end of 2024, the workforce of Block was reportedly 11,300 strong.
Tech Crunch reports that Jack Dorsey, co-founder and CEO, Block has let staff know via e-mail that the trimming, part of organisational changes, will see the ‘strategic’ layoff of 391 people, while 460 people will go because of their poor performance ratings. About 80 managers are being asked to leave so that the company has a flatter hierarchy.
These job cuts, according to Dorsey are necessary to keep the firm ahead in the industry. In his e-mail, Dorsey also seeks feedback from his employees on areas where the firm can improve
Block is also closing 748 open roles, except for critical/leadership roles and the ones that have reached the offer stage.
The flattening exercise is expected to retain only those directly reporting to Dorsey making up the core team of leaders, followed by four levels of managers reporting directly to these four.
Block, which owns Cash App and Square, offers mobile payments services and point-of-sale hardware/software for businesses.
1 Comment
Jack Dorsey, I salute you for your vision and noble initiatives.
The step you took a year ago was truly commendable. I may not know you personally, but I deeply respect your thinking.
In India, whether in government or private sectors, many people work only for their own benefit or their families, focusing solely on salaries and promotions. Similarly, many organizations start with the intent to serve society but, over time, lose sight of their original purpose and become self-serving.
I could write much more, but respecting both your time and mine, I just want to express my admiration for your vision once again.
Jai Hind!
— Nandlal Kumar