Block Inc. Begins Layoffs: Dorsey's Plan to Downsize Staff by 10%

• Block Inc. Commences Employee Downsizing in Line with Previous Disclosure
• The Impact on Block's Subsidiaries
• Reasons for Downsizing
• Unchanged Targets and Future Strategies
• Block Inc.'s Focus on Blockchain

Block Inc. Commences Employee Downsizing in Line with Previous Disclosure

Block Inc., a renowned firm focused on blockchain and payments, headed by the founder of Twitter, Jack Dorsey, has commenced its employee downsizing process. This development, as verified by The Source, aligns with the previously disclosed plan of the company to reduce its workforce by up to 10% by the end of 2024.

The Impact on Block's Subsidiaries

Block's portfolio of companies includes Square Inc., Cash App, Tidal, and the bitcoin-focused division, TBD. Last year, in an earnings call, the company mentioned its plan of cutting down its workforce from 13,000 in the third quarter of 2023 to a maximum limit of 12,000 by the end of this year.

Reasons for Downsizing

In November, a memo addressed to the Block staff, obtained by Business Insider, conveyed Dorsey's explanation for the downsizing. He pointed out that the expansion of the company had significantly surpassed the growth of their revenue and business.

Unchanged Targets and Future Strategies

The firm did not reveal the exact number of layoffs this week to The Source. However, it affirmed the consistency of its overall targets and plans to achieve them gradually via performance adjustments and other restructuring measures.

Block Inc.'s Focus on Blockchain

Block, known formerly as Square, underwent a rebranding process in 2021 to highlight its shift towards blockchain technology. Dorsey stepped down from his position as CEO at Twitter that same year, but continued his tenure at Block, frequently expressing his support for bitcoin.

Edited by Jonathan Stoker