Block Lays Off 931, Restructures Workforce

Jack Dorsey's fintech company Block is laying off 931 employees, which is about 8% of its workforce, as part of a strategic reorganization effort. The layoffs, announced in an internal email from Dorsey, are attributed to the need for greater strategic alignment, performance improvements, and a flattened organizational hierarchy. Specifically, 391 roles are being cut due to strategic repositioning, 460 due to performance issues, and 80 management roles to decrease organizational layers. The company is also closing 748 open positions, except those critical to operations, leadership, or at the offer stage. Dorsey emphasized that these cuts are not financially motivated nor aimed at replacing employees with AI but are necessary to enhance efficiency and competitiveness in a rapidly evolving industry. This move follows similar layoffs last year, and the company's stock has fallen 29% this year amid slowing revenue and profit growth.