Summary:
Block announces 931 layoffs, its second major workforce reduction in a year.
Layoffs target strategic positioning, performance management, and organizational hierarchy.
Dorsey emphasizes layoffs are not financially motivated or aimed at replacing workers with AI.
The company will also close 748 job openings and reassign 193 managers.
Block, the fintech company co-founded by Jack Dorsey, is undergoing significant changes with the announcement of 931 layoffs, marking its second major workforce reduction in a year. The layoffs are aimed at improving strategic positioning, performance management, and organizational hierarchy.
Layoff Breakdown
According to Dorsey, the layoffs will affect:
- 391 employees due to strategic reasons
- 460 employees for performance-related issues
- 80 management positions to streamline the organizational structure
In addition to the layoffs, Block will be closing 748 job openings but will make exceptions for critical roles and positions in the offer stage. Furthermore, 193 managers will be reassigned to individual contributor roles.
Dorsey emphasized that these layoffs are not financially motivated and are not aimed at replacing workers with artificial intelligence. Instead, they are necessary to maintain competitiveness in a rapidly changing industry. He expressed urgency in the restructuring process, stating, "we're behind in our actions" and that the company needs to act swiftly.
Full Email from Jack Dorsey to Employees
Dorsey personally addressed the employees in an internal email, stating:
"hi all.
Today we'll be making some org changes, including eliminating roles and beginning the consultation process in countries where required. I want to give you all the straight facts.
As I said at the last Block, there are three areas we'd like to address:
- Strategy: reducing from teams that are off strategy.
- Performance: parting ways with people with a 'below' or trending towards 'below.'
- Hierarchy: flattening our org to a max depth of innercore+4.
This is the toughest part of my job, and I fight hard against any of these considerations. We must have a very high bar of correctness for us to take any action. Thank you to all those leaving us. I am grateful and appreciative for you and your work, which has built us up to this point.
Thank you,
Jack"
Dorsey’s email reflects his commitment to increasing shareholder value while acknowledging the difficult nature of the layoffs. The restructuring follows a similar event in early 2024 when around 1,000 employees were laid off, leaving the company with approximately 11,300 staff worldwide as of December 2024.
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