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Block Inc., a financial technology company co-founded by former Twitter CEO Jack Dorsey, has laid off some of its employees, making it the second time in two months that the company has cut its workforce.
These reductions are in line with a previous statement from Dorsey, who said the company aims to reduce its total workforce by 10% by 2024.
More workforce reductions at Block
In a note to Block staff on January 30, 2024, as seen by Business Insider, Dorsey, co-founder and CEO of Block, said the downsizing will affect employees of CashApp, Foundational and Square – subsidiaries controlled by Block.
Dorsey said CashApp, Foundational and Square each conducted an assessment to determine which parts of the teams needed to be reduced, restructured and reorganized.
Although the exact number of workers affected was not specified, Dorsey said in the memo that “a large number of our teammates” had been laid off. Meanwhile, Business Insider, citing a person familiar with the matter, revealed that Block has reportedly laid off nearly 1,000 employees.
“We decided it was better to proceed immediately rather than space them out arbitrarily, which didn't seem fair to the individuals or the company. When we know we need to act, we want to do it immediately, rather than letting things drag on. »
An absolute ceiling
The latest development marks the second time in two months that job cuts have taken place at Block, the first time in December 2023.
Digital music streaming app Tidal, another Block subsidiary, licensed more than 10% of its employees following a previous announcement from Dorsey in November.
Block's then-CEO said the company planned to set the “hard cap” on the number of Block workers at 12,000 by the end of 2024, up from more than 13,000 recorded in the third quarter of 2023, thus informing employees of the reduction in force. .
In a letter To shareholders, Dorsey said the company had imposed a cap on its employees before its initial public offering (IPO), stating that given the success of that move, Block was going to implement the measure again.
“We're going to start again now, creating an absolute cap on the number of people we have in the company, held at 12,000 people until we feel that the growth of the company has far exceeded the growth of the company. 'business.”
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