Jack Dorsey's Layoff Email: Read the Full Message

Fintech Block Announces Workforce Reduction

Fintech Block recently implemented a significant workforce reduction, impacting approximately 8% of its total employees. A total of 931 individuals were laid off on Tuesday, as revealed in a leaked internal communication obtained by TechCrunch.

Details of the Announcement

The announcement was delivered to staff via email from Jack Dorsey, Block’s co-founder and CEO. Dorsey indicated that organizational changes were being made, including role eliminations and the initiation of consultation processes where legally mandated.

Block’s Business Overview

These changes represent the latest adjustments within Block, the financial services corporation overseeing Cash App and Square. The company specializes in providing mobile payment solutions for individual consumers and point-of-sale systems – both hardware and software – for businesses.

Categorization of Role Cuts

Dorsey detailed that the role reductions fall into three primary categories. The first involves 391 positions being eliminated due to strategic realignment.

Performance-Based Layoffs

The largest group affected, numbering 460 employees, were laid off based on performance evaluations. Dorsey explained that these individuals either received a “below” rating on the company’s internal performance tracking system or were projected to receive such a rating.

Management Restructuring

A further 80 managerial positions are being cut to streamline Block’s organizational structure to what is internally referred to as “innercore+4.” This signifies a hierarchy of Dorsey’s direct reports, extending four levels down. Additionally, 193 managers will transition into individual contributor roles.

Addressing Layoff Motivations

Dorsey explicitly stated that the layoffs are not financially driven nor intended to facilitate the replacement of employees with artificial intelligence. Instead, he attributed the cuts to evolving strategic priorities and a commitment to enhancing performance standards and accelerating operational speed.

Hiring Freeze and Open Positions

Block is also enacting a hiring freeze, closing 748 currently open positions. Exceptions are being made for roles that have reached the offer stage, positions critical to ongoing operations, and key leadership roles.

Previous Workforce Adjustments

Block previously underwent substantial layoffs in January 2024, resulting in the elimination of approximately 1,000 roles. As of December 2024, the company reported a global workforce of around 11,300 employees, according to its most recent 10K filing.

Company Response

Block has not yet issued an official response to requests for comment regarding these developments.

Email to Employees

The complete email sent by Dorsey to Block employees on Tuesday is provided below. Minor modifications have been made to the grammar and formatting to protect the confidentiality of the sources who shared it with TechCrunch.

This report was updated on Tuesday at 4:28pm to include the full text of the layoff announcement email.