Block Inc. Initiates Layoffs as Part of Planned Workforce Reduction

The specifics of the recent layoffs were not disclosed, but Block affirmed that the overall targets remained unchanged and would be achieved gradually through a combination of performance adjustments and other organizational measures.

Block Inc. Initiates Layoffs as Part of Planned Workforce Reduction
Image / Block Inc

Block Inc., the blockchain and payments company founded by Twitter's Jack Dorsey, has officially commenced a series of layoffs. The reduction in staff is part of Block's pre-announced plan to cut its headcount by up to 10% by the close of 2024, according to news report by Coindesk.

Block Inc. is a conglomerate that encompasses Square Inc., Cash App, Tidal, and the bitcoin-focused division TBD. The decision to trim its workforce was revealed during earnings call last year, where the company outlined its intention to scale down from 13,000 employees in the third quarter of 2023 to a targeted ceiling of 12,000 by the conclusion of 2024.

In a memo distributed to Block's workforce and obtained by Business Insider back in November, Jack Dorsey elucidated the rationale behind the downsizing initiative. He noted that the company's rapid expansion had outpaced the growth of its business and revenue, necessitating a strategic realignment of its organizational structure.

While the exact scale of the recent layoffs was not explicitly disclosed, Block affirmed that the overarching targets remain unchanged. The reduction will be executed incrementally, leveraging a combination of performance-based adjustments and other organizational measures to streamline operations effectively.

Block, previously known as Square, underwent a rebranding in 2021, underscoring its pivot towards blockchain technology. Jack Dorsey, who resigned from his CEO position at Twitter in 2021, stayed on as the leader of Block. Throughout his tenure, Dorsey has consistently advocated for bitcoin, aligning the company with the principles and advancements within the cryptocurrency space.

This move by Block Inc. reflects a broader trend in the tech industry, where companies periodically reassess their workforce requirements to align with strategic goals and evolving market dynamics. As the business landscape continues to transform, such recalibrations aim to ensure sustained growth, innovation, and adaptability.