Jack Dorsey’s Block (formerly Square) is reportedly planning a large-scale layoff in the coming days. As per the report, the financial services tech platform might cut down as much as 10 percent of its workforce, as part of its upcoming annual performance reviews. The company reportedly has just shy of 11,000 employees, which means the potential layoffs can affect hundreds of workers. It is said that the planned job cuts are part of a broader restructuring; however, the reason behind it was not reported.
Block to Reportedly Fire 10 Percent of Workforce
According to a Bloomberg report, the Jack Dorsey-owned company has recently been informing hundreds of employees that their roles could be cut during the upcoming annual performance reviews. Citing unnamed people familiar with the matter, the publication claimed that as many as 10 percent of the workforce was at risk of losing their jobs. With a reported 11,000 workforce, this means about 1,100 people could be impacted if the company goes ahead with the plans.
There is no clear reason for the layoffs, but the report mentioned that Block is planning a “broader business overhaul.” Whether it is due to AI or if the company is resizing particular business divisions is not certain.
Block is essentially the umbrella organisation behind a collection of digital, payments-focused services. It is the parent firm of merchant-focused Square, the consumer finance app Cash App, the buy-now-pay-later (BNPL) service Afterpay, and several cryptocurrency-focused initiatives. Interestingly, the music streaming platform Tidal is also majority-owned by the Jack Dorsey venture.
The company famously does not have a headquarters, to highlight the global nature of its business. In January, Block officially changed its NYSE ticker symbol from SQ (representing Square) to XYZ. The tech firm said the change was aimed at highlighting the identity shift to services beyond just what Square does.
In 2024, Block reportedly faced an investigation from authorities in the US over its crypto business. It was said that several compliance violations from the tech firm were detected by the regulators, leading to the probe.
