Block Inc., the financial payment processing company co-founded by Jack Dorsey, has recently undergone a substantial reduction in its workforce. As reported by Business Insider on January 30, the company laid off over 1,000 employees, which constitutes about 10% of its total staff. This move was part of an effort to streamline operations within the company.
The layoffs impacted various segments of Block, including the Cash App, Foundational, and Square divisions. Jack Dorsey, in a note to the company’s staff, explained the decision to conduct these layoffs in a single day. He emphasized the importance of taking immediate action rather than prolonging the process, which he believed would be unfair both to the employees and the company.
The layoffs did not come as a complete surprise to some employees. Shayna Bulluck, a former internal mobility manager at Block, mentioned on LinkedIn that the company had previously hinted at impending cuts last year. Despite this forewarning, the actual implementation of these layoffs was still a hard hit for many, including Bulluck and her team.
The staff reduction follows Block’s announcement two months prior about launching a self-custody Bitcoin wallet. For the third quarter of 2023, Block reported a revenue of $5.62 billion, with a profit of $44 million from its Bitcoin holdings. This move by Block Inc. aligns with a broader trend in the U.S. business sector, where major companies like BlackRock, Twitch, and PayPal have also announced layoffs as part of cost-cutting measures.
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