Jack Dorsey Announces 931 Job Cuts At Block To Streamline Operations; Details Inside

This round of layoffs follows a similar move in early 2024, when the company also reduced its workforce by about 1,000 jobs. As of December 2024, Block employed approximately 11,300 people globally

In his message to employees, Dorsey thanked those departing the company for their contributions to its growth

Source : ABPLIVE AI

Jack Dorsey, co-founder and former CEO of Block, has announced the company will be laying off 931 employees. This marks Block's second major workforce reduction in just over a year. The cuts will impact employees across its popular platforms, including Square, CashApp, and Tidal, according to the Times of India.

In an internal email to staff on Tuesday, Dorsey emphasised that the layoffs are not financially driven, nor are they aimed at replacing human workers with AI. Instead, he explained that the cuts are part of a strategic plan to streamline operations, boost performance, and reduce managerial layers.

The company’s internal breakdown reveals that the 931 job cuts will be distributed across three main categories: 391 roles will be eliminated as part of a strategic repositioning, 460 employees will be let go due to performance issues, and 80 management positions will be cut to streamline the organizational structure, the report said. In addition, 193 managers will transition into individual contributor roles.

Along with the layoffs, Block will close 748 open job positions, except roles that have already reached the offer stage, critical operational positions, and key leadership roles.

Restructuring For Competitiveness

According to the report, Dorsey stressed the need for restructuring, acknowledging that Block has been slow to adapt to the fast-changing industry. “We’re behind in our actions, and that’s not fair to the individuals who work here or the company,” he wrote. He also reiterated his commitment to increasing shareholder value, calling the changes essential for maintaining Block's competitive edge.

This round of layoffs follows a similar move in early 2024, when the company also reduced its workforce by about 1,000 jobs. As of December 2024, Block employed approximately 11,300 people globally.

Dorsey’s Message To Employees 

In his message to employees, Dorsey thanked those departing the company for their contributions to its growth. “We must have a very high bar of correctness for us to take any action, which takes iteration and time to get right,” he wrote, inviting direct feedback on how the process could be improved.

The report also notes that Dorsey assured employees that more information on how the changes would impact them personally would be provided soon, emphasising his belief that the restructuring would ultimately help the company execute its strategies more effectively.