Block, the financial technology company co-founded by fellow billionaire Jack Dorsey, just clocked its own 931 employees. Instead, the company communicated this news to its staff in an email from CEO Jack Dorsey announcing an extremely complicated, perhaps self-destructive, strategic restructuring plan. The reductions touch nearly every department inside the company, designed to better focus the still-fragile operator and improve overall performance.
The decision to lay off the workforce includes eliminating positions in three key areas. That first category, 391 employees are being let go for “strategic” reasons. Retirement Savings Plan Category The second and largest category — 460 employees — is the result of firing them for “performance” reasons. Block is severing connections with people who received “developing” and “below” ratings. They are phasing out those who are headed toward a “below” rating.
To further flatten the company’s hierarchy, Block is eliminating 80 management roles. All 748 open roles across the company will be eliminated. Only positions that have made it to the offer stage, essential operational functions, and essential key leadership roles are exempt.
Prior to these layoffs, Block employed around 12,000 employees. Dorsey personally reached out to employees to set the record straight. He reiterated that the layoffs were not financially driven or an intent to use AI technology to supplant human workers.
"None of the above [cuts] are trying to hit a specific financial target, replacing folks with AI, or changing our headcount cap." – Jack Dorsey
This restructuring follows in the wake of another round of major layoffs announced in January 2024. Around the same time, Block eliminated around 1,000 jobs from its ranks. The current layoff cycle is no aberration, proving that the company’s long-term efforts to increase efficiency and improve performance expectations are still alive and kicking.
"Raising the bar and acting faster on performance." – Jack Dorsey
The reorganization will bump 193 managers down to individual contributor roles. Along with the name change, this move will focus on streamlining the NRDC’s organizational structure.
Our knowledge of these upcoming changes comes from a leaked internal email viewed by TechCrunch. Block also wants to keep a leaner and more nimble business model. Those factors have led the company to eliminate previously held managerial positions and reassign duties.
