Block has reportedly laid off a substantial number of employees, impacting nearly 1,000 workers. This represents approximately eight percent of the company’s total staff, according to reports from TechCrunch and The Guardian.
The publications cited an internal email from Jack Dorsey, Block’s co-founder and CEO, detailing the organizational changes. Dorsey explained that the layoffs stem from three primary areas, starting with strategic alignment. A total of 391 employees are being let go as the company reduces “teams that are off strategy.”
Further reductions include 460 workers who received a “below” rating or were trending towards such a rating based on internal performance evaluations. Additionally, Block is eliminating 80 management positions while reassigning 193 managers to individual contributor roles. This aims to flatten the organizational structure, reducing layers of middle management between workers and executive leadership.
Dorsey’s email also clarified that the layoffs are not tied to specific financial goals or a strategy of replacing workers with artificial intelligence. He stated that the changes are intended to improve strategic focus and accelerate execution, further asserting that flattening the structure will allow the company to “move faster and with less abstraction.”
The CEO also acknowledged that all Block employees have equity in the company, suggesting this reorganization will contribute to its ability to execute its strategy effectively. Block’s stock value has seen a significant decline, dropping by about 30 percent this year.
Dorsey explained that the company opted for a single, large-scale layoff rather than staggered dismissals to respond more swiftly. “We need to move to help us meet and stay ahead of the transformational moment our industry is in,” he wrote.
Alongside the layoffs, Block is also rescinding offers for 748 previously open positions, leaving only crucial leadership and critical roles, as well as those already in the offer stage, open. Block, which owns Square and Cash App, previously undertook a similar reorganization in early 2024. That round of restructuring also resulted in approximately 1,000 layoffs, aimed at streamlining operations and limiting headcount to about 12,000 employees. TechCrunch noted that Block had around 11,300 employees globally by December 2024, meaning its current employee count is now below its initial 2023 projections.
