Reports indicate that Block, a prominent tech company, has initiated significant layoffs, with CEO Jack Dorsey notifying employees of the decision. The layoffs, affecting a “large number” of workers, predominantly impact teams associated with Cash App, Square, and foundational operations. Sources suggest that nearly 1,000 individuals are affected by the restructuring.
Dorsey’s internal memo emphasizes the company’s pursuit of operational efficiency and streamlining. Notably, Block had previously downsized its Tidal team by approximately 40 employees in December. The company had announced intentions to reduce its workforce to approximately 12,000 employees from the 13,000 it had in late 2023.
While initial plans suggested the layoffs would occur gradually over several months, executives opted for a simultaneous approach. Dorsey explained in the memo the rationale behind this decision, emphasizing the need for swift action to maintain fairness and clarity within the organization.
The tech industry has witnessed a wave of layoffs over recent months, with notable companies like Unity, Twitch, Amazon, Meta, Microsoft, eBay, and Google implementing workforce reductions. Additionally, PayPal announced its plans to terminate approximately 2,500 employees. Engadget has reached out to Block for official confirmation regarding the layoffs.