By CryptoNews - 2 months ago - Reading Time: 2 minutes
Jack Dorsey’s Block Inc. Initiates Layoffs to Reach 12,000 Employee Cap
Block Inc., led by Jack Dorsey, has started implementing job cuts in a bid to reduce its workforce by the end of the year.
According to a recent report by Business Insider, Block has commenced a gradual reduction of its workforce, aiming to decrease its current staff count of approximately 13,000 by up to 10.
The move is part of the company’s strategic target to cap the total number of employees at no more than 12,000 by the end of 2024.
Jack Dorsey’s Layoff Decision
In a recent communication to Block staff, CEO Jack Dorsey announced the company’s layoff decision.
As per a note obtained by Business Insider, Dorsey, who also co-founded Twitter, did not disclose the exact number of affected employees, but a source familiar with the matter indicated that it was close to 1,000.
The layoffs predominantly affected personnel across Block’s various divisions, including Cash App, Foundational, and Square. Dorsey emphasized that these measures were part of a broader effort to streamline operations and increase efficiency across the company.
“Today our Cash App, Foundational, and Square teams are parting ways with a large number of our teammates,” said Dorsey in the note.
“Following the ‘constraints’ email I sent last year, each team took some time to evaluate themselves through a lens of stronger performance and stricter prioritization.”
Block’s Second Round of Downsizing
Block first declared its intention to limit its workforce during the announcement of its third-quarter earnings in November 2023.
This latest round of layoffs is the company’s second in a span of just two months. Previously, in December, Block had reduced its workforce by 40 employees, mainly from its Tidal music streaming service division.
“Why is so much happening in one single day?” said Dorsey. “All of these teams were confident in the direction they’re taking, and were ready to take action within the same 2-3 weeks.”
“When we know we need to take an action, we want to take it immediately, rather than let things linger on forever,” said Dorsey.
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Original source: CryptoNews