Jack Dorsey’s Block Inc. Initiates Layoffs, begins its 12,000 employees cap goal

In a recent move to streamline operations, Block Inc., led by CEO Jack Dorsey, has commenced layoffs aimed at reducing its workforce to meet its target of 12,000 employees by the end of 2024.

The tech and crypto industry has recently been seeing a massive layoff, with top companies like Google, Amazon, and Facebook cutting their workforce drastically. 

Uber and PayPal have recently collectively fired more than 4000 of their employees, showing a big sign of reduced workforce culture adoption initiated by X (formally Twitter) by Elon Musk In 2023.

Dorsey, who also co-founded Twitter (Now X), announced the layoff decision in a recent communication to Block staff. 

While the exact number of affected employees was not disclosed, sources familiar with the matter indicated that it was close to 1,000. 

The layoffs primarily impacted personnel across various divisions, including Cash App, Foundational, and Square.

Related: Prime Trust Crypto Custodian Signals Potential Layoffs for 62 Employees – Is the Bear Market to Blame?

Dorsey emphasized that these measures were part of a broader effort to streamline operations and increase efficiency across the company. 

He highlighted that the decision to conduct layoffs in a single day was to avoid prolonging the process, ensuring swift action when needed.

“Today our Cash App, Foundational, and Square teams are parting ways with a large number of our teammates,”

said Dorsey in the note sent.

“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.”

Second Round of Downsizing

This latest round of layoffs marks Block’s second in just two months. Previously, in December, the company reduced its workforce by 40 employees, mainly from its Tidal music streaming service division.

The decision to conduct layoffs aligns with Block’s strategic goal announced during its third-quarter earnings in November 2023, where it aimed to cap its workforce at 12,000 employees by the end of 2024.

“Why is so much happening in one single day? All of these teams were confident in the direction they’re taking, and were ready to take action within the same 2-3 weeks,”

said Dorsey.

“When we know we need to take an action, we want to take it immediately rather than let things linger on forever,”

said Dorsey.

The company’s aim is to achieve a leaner organizational structure, adapt to the evolving tech industry and enhance its competitive position as said by Jack.

Related: Crypto Infrastructure Provider Qredo Slashes Staff, Cuts Annual Expenses by 35% – Bear Market Continues?