Block Inc., co-founded by Twitter creator Jack Dorsey, has initiated a major layoff strategy, affecting over a thousand employees across various sectors of the company.
What Happened: Block Inc. SQ on Wednesday laid off a significant portion of its workforce. The layoffs predominantly impacted employees in the Cash App, Foundational, and Square sectors, equating to roughly 10% of the company’s workforce, reported Business Insider.
The layoffs were reportedly conducted in a single day to boost efficiency at the financial firm. “We decided it would be better to do at once rather than arbitrarily space them out, which didn’t seem fair to the individuals or to the company,” Dorsey said in a note to Block staff.
A considerable number of now-former Block employees have shared their farewell messages on LinkedIn. The company had previously warned staff about potential reductions, suggesting that these layoffs were anticipated.
The layoffs follow about two months after the company announced its plans to launch a self-custody Bitcoin BTC/USD wallet. The firm posted a $5.62 billion revenue for Q3 2023, along with a $44 million profit from its Bitcoin holdings.
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Why It Matters: The layoffs at Block Inc. are part of the company’s broader strategy to streamline operations and improve efficiency. The move to lay off employees in a single day is a significant shift from traditional approaches, which often involve phased layoffs over time. This strategy, as explained by Dorsey, was aimed at fairness to both the employees and the company.
The layoffs at Block further contribute to a substantial year of workforce reductions in the technology sector. Significant numbers of employees were let go at both Google and Amazon, while Meta is approaching downsizing differently, opting to remove specific job roles and giving those impacted the option to seek different positions within the company.
Block Inc. did not respond to Benzinga’s request to comment at press time.
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