Fintech giant Block has laid off 931 employees—approximately 8% of its workforce—in a company-wide restructuring move, according to an internal email obtained by TechCrunch.
In the message to staff, CEO Jack Dorsey outlined the rationale behind the job cuts, emphasizing organizational changes rather than financial targets. He stated that the layoffs were driven by strategic adjustments, performance evaluations, and efforts to streamline the company’s hierarchy.
“None of the above points are trying to hit a specific financial target, replacing folks with AI, or changing our headcount cap. They are specific to our needs around strategy, raising the bar and acting faster on performance, and flattening our org so we can move faster and with less abstraction,”
Dorsey wrote.
According to the email, 391 roles were eliminated due to strategic realignments, while 460 employees were let go for performance-related reasons. Dorsey noted that the company parted ways with employees who had received a “below” rating or were trending toward it in Block’s internal evaluations. Additionally, 80 managerial roles were cut to improve efficiency, while 193 managers were reassigned to individual contributor roles.
Block is also shutting down 748 open positions, except for those deemed critical or already in the final hiring stages.
This marks Block’s second round of significant layoffs in the past year. Earlier in 2024, the company let go of around 1,000 employees. As of December 2024, Block had a global workforce of approximately 11,300.
The latest restructuring follows Block’s disappointing Q4 earnings report in late February, which revealed adjusted earnings per share of 71 cents—falling short of the projected 87 cents—and revenue of $6.03 billion, missing the expected $6.29 billion. Block has not issued a public statement regarding the layoffs as of press time.
At the same time, Block was engaged in discussions with the New York State Department of Financial Services (NYDFS) to address regulatory concerns regarding its Bitcoin operations and anti-money laundering (AML) compliance.
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