Block Inc., the financial payments processing company co-founded by Twitter's Jack Dorsey, has reportedly conducted a significant layoff, affecting over 1,000 employees. The move is part of an effort to streamline the operations of the financial firm. Business Insider reported on January 30 that the layoffs span across Block's divisions, impacting about 10% of the company's workforce, including employees from Cash App, Foundation, and Square.
Jack Dorsey, in a note to Block staff, mentioned that the decision to take action immediately was made to avoid a prolonged and unfair separation process. The layoffs were executed in one day to ensure a swift and decisive move rather than dragging out the process. Dorsey emphasized the importance of prompt action when needed. Several former Block employees expressed their farewells on LinkedIn, acknowledging that the layoffs were not entirely unexpected, as the company had warned of such measures in the late part of the previous year.
Shayna Bullock, who served as an internal mobility manager at Block since March 2023, mentioned, "Am I surprised? Not really... but I certainly hoped that my team and I wouldn't be axed. Alas, here comes the chopping block." The layoffs come around two months after Block's announcement of plans to launch a self-custody Bitcoin wallet. Despite the layoffs, the company reported revenue of $5.62 billion in the third quarter of 2023, with $44 million in profits attributed to its Bitcoin holdings. The move aligns with a trend among major U.S. companies, including BlackRock, Twitch, and PayPal, announcing job cuts in recent months to manage costs effectively.
