The fintech giant Block, co-founded by Jack Dorsey, has reduced its workforce by 931 people as part of a restructuring effort following weak Q4 financial results.
Overview of the Situation
Block has laid off 931 employees, representing about 8% of its total workforce, just a month after announcing Q4 earnings that fell short of expectations. The information comes from an internal email disclosed by TechCrunch.
Reasons for Layoffs
Dorsey stated in his message that the changes were driven by the need to re-align the company's strategic priorities and enhance performance, as well as to flatten the organizational structure. He emphasized that the layoffs are not related to financial targets, replacing employees with AI, or changing the headcount cap.
Company's Response and Future Plans
The company slashed about 391 positions for strategic reasons and 460 for performance issues. Another 80 managerial roles were eliminated, while 193 managers were moved to individual contributor roles. The 748 open positions were closed, except those critical to operations and leadership. Previously, in early 2024, the company laid off around 1,000 employees.
Block is continuing its optimization process despite previous weak financial results. The company is focused on strategic development and operational improvements without emphasizing financial goals.
