Block, Jack DorseyThe financial technology company plans to let nearly 1,000 current employees go, while making other modifications to its operations during its second decision of this type in just over a year.
Dorsey, who co-founded and previously directed Twitter before co-founding block in 2009, informed the employees of the imminent cuts Tuesday in an email, consulted by the Guardian, entitled “Block smaller”. The layoffs will have an impact on more than 930 employees, with nearly 200 managers who have been transferred to management roles, and nearly 800 open jobs will be closed, according to the email.
Block now uses square and after-pay payment platforms, the Cashapp money transfer application and the Tidal music streaming service.
Dorsey wrote in the email that the layoffs and other modifications made to the endowment and the organization are not implemented by the intention of reaching “a specific financial target, replacing people with AI or modifying our accusation cap”. As part of a previous reorganization It started at the beginning of 2024 and also saw around 1,000 block employees lose their jobs, Dorsey implemented a maximum of 12,000 employees.
Instead, Dorsey wrote that this additional reorganization is to “increase the bar and act more quickly on performance, and flatten our organization so that we can move quickly and with less abstraction”, according to the email. Last year, Dorsey struck a your similar By informing the employees of the layoffs, saying that the company had to “build like a startup again”.
In Tuesday email, Dorsey added that he promulgated reductions in staff and management levels and closed open jobs at the same time, instead of time, because “we are late in our actions, and this is not just for the individual or the business”.
Block’s action has dropped by 29% this year so far. His revenues and profits have increased less in the past year, creating a concern for shareholders, even if Dorsey resumed operational control during this period. Dorsey noted in his email that part of his work consists in increasing the value of the company’s shares and that this reorganization “will help us to concentrate and execute better to do exactly that”.
“When we know, we have to move and there was not enough movement,” the CEO wrote. “And we have to move faster to stay ahead of the transformation moment in which we industry, so we are able to continue to increase access, opening and automation.”
A block spokesman did not respond to calls and emails asking for comments.