According to CryptoPotato, Block Inc., a fintech company co-founded by former Twitter CEO Jack Dorsey, has laid off some of its employees, marking the second time in two months that the company is cutting down on its workforce. The cuts are in line with a previous statement by Dorsey, who said that the firm is aiming to reduce its total headcount by 10% by 2024.
In a note to Block staff on Jan. 30, 2024, Dorsey said the workforce slash will affect employees at CashApp, Foundational, and Square – subsidiaries controlled by Block. Dorsey stated that each subsidiary did an assessment to find out which parts of the teams needed to be reduced, restructured, and reorganized. Although the exact number of workers affected was not stated, Dorsey said in the note that a “large number of our teammates” were laid off. Meanwhile, Business Insider, citing a person familiar with the matter, revealed that Block reportedly let go of nearly 1000 employees.
The latest development marks the second time in two months that job cuts have happened across Block, the first time being in December 2023. Digital music streaming app Tidal, another subsidiary of Block, laid off more than 10% of its employees following a previous announcement by Dorsey in November. The Block CEO at the time said that the company was planning to put the “absolute cap” on the number of Block workers at 12,000 by the end of 2024, down from over 13,000 recorded by Q3 2023, giving employees the heads up about workforce trimming. In a letter to shareholders, Dorsey said that the company put a cap on its workers before its initial public offering (IPO), stating that given the success of the move, Block was going to implement the measure once again.