In a sweeping restructuring move, Block Inc., formerly Square, announced that it will reduce its workforce from over 10,000 employees to just under 6,000, marking one of the largest layoffs in the company’s history. The decision affects more than 4,000 employees globally.
Jack Dorsey, co‑founder and board member, explained the move in an internal note shared publicly on Thursday, citing the company’s transition to smaller, flatter teams powered by advanced intelligence tools. Dorsey emphasized that the layoffs are not due to financial trouble; Block’s business remains profitable, with gross profit per employee projected to surpass $2 million, four times the pre‑COVID efficiency levels.
“Repeated rounds of cuts are destructive to morale, focus, and trust. I’d rather take a hard, clear action now and build from a position we believe in,” Dorsey wrote.
Employees affected by the reduction will receive 20 weeks’ salary plus one week per year of tenure, equity vested through the end of May, six months of healthcare, company devices, and a $5,000 transition allowance. Dorsey assured that communication channels would remain open for employees to say their goodbyes and that a live video session would be held to thank departing staff.
Dorsey stressed that the decision reflects a strategic shift in how Block will operate, rather than financial weakness, noting that intelligence-driven operations allow for leaner, more capable teams and the ability to focus on customer‑empowering features such as banking, lending, and BNPL (buy-now-pay-later) services.
“To those leaving, I’m grateful for you, and I’m sorry to put you through this. You built what this company is today,” Dorsey said, also addressing remaining staff to rally them around the company’s future direction.
The company’s restructuring represents a significant recalibration of its workforce and operations as it seeks to increase efficiency, accelerate innovation, and maintain leadership in digital financial services.
ELIJAH ADEYEMMI
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