Block Inc. Cuts Over 900 Positions Due to Soft Q4 Results – Jack Dorsey

Fintech behemoth Block is said to have laid off more than 930 employees as part of a reorganization effort following poor Q4 earnings.

Block, the fintech company founded by Jack Dorsey, has reportedly let go of 931 employees, which is roughly 8% of its total workforce. This comes just a month after the company announced lower-than-expected revenue and profit figures for Q4, as revealed in an internal email obtained by TechCrunch.

In his message to the staff, Dorsey is said to have stated that Block is "making some org changes, including eliminating roles and beginning the consultation process in countries where required." Dorsey refrained from attributing the layoffs to the disappointing financial results, instead stating that they are intended to align with strategic priorities, improve performance, and simplify the company's organizational structure.

"none of the above points are trying to hit a specific financial target, replacing folks with AI, or changing our headcount cap. they are specific to our needs around strategy, raising the bar and acting faster on performance, and flattening our org so we can move faster and with less abstraction."

Jack Dorsey

As per the CEO of Block, the company is eliminating 391 positions due to "strategy" reasons and letting go of 460 employees due to "performance" issues. Dorsey also mentioned that the company is parting ways with those who had a "below" rating or were trending toward it in Block's internal performance metrics. Additionally, 80 managerial roles were cut as part of efforts to streamline operations, while 193 managers were moved to individual contributor roles.

Block is also closing 748 open positions, with the exception of those in critical operations, key leadership, and roles that have already reached the offer stage, according to Dorsey's email. In early 2024, Block also let go of around 1,000 employees and as of December 2024, the company had approximately 11,300 employees worldwide. At the time of this report, Block has not made any public statements regarding the matter.

In late February, Block's Q4 earnings report fell short of Wall Street's expectations. The company reported adjusted earnings per share of 71 cents, which was below the forecasted 87 cents, and revenue of $6.03 billion, which missed the expected $6.29 billion.