Jack Dorsey has announced major layoffs that will impact several tech companies.
Dorsey is the co-founder of Block, which owns Square, Cash App, and Afterpay, CNN reported. He revealed on X that he will reduce its workforce from over 10,000 to just under 6,000, eliminating roughly 4,000 roles. He said affected employees will be asked to leave or enter consultation. Those who lose their position will receive 20 weeks of their salary, an additional week of pay per year of tenure, vested equity through May, six months of healthcare, corporate devices, and $5,000 that can be used to ease the transition. He shared that these conditions may vary for those who work outside the U.S.
In the post, Dorsey explained the decision to employees, making it clear it was not a sign the company was in decline. In fact, he said the business is strong, gross profit is rising, customer reach is expanding, and profitability is improving.
Instead, the workforce reduction is informed by intelligence tools that Block is developing and deploying.
“i had two options: cut gradually over months or years as this shift plays out, or be honest about where we are and act on it now. i chose the latter. repeated rounds of cuts are destructive to morale, to focus, and to the trust that customers and shareholders place in our ability to lead,” he wrote on X.
“i’d rather take a hard, clear action now and build from a position we believe in than manage a slow reduction of people toward the same outcome. a smaller company also gives us the space to grow our business the right way, on our own terms, instead of constantly reacting to market pressures. a decision at this scale carries risk. but so does standing still,” he continued.
Dorsey added that Block completed a review to determine which roles and employees were needed to scale the business.
He encouraged the remaining Block workforce to stay the course as the company navigates these changes and remains committed to serving its customers.
