Jack Dorsey Announces Sweeping Layoffs At Block, Impacting Tidal, Square, And Cashapp

In recent news, Block, the parent company of Tidal, Square, and CashApp, is preparing for another wave of job cuts, as confirmed by CEO Jack Dorsey.

What Happened: Business Insider reported on Dec. 6, 2023, that Dorsey had shared with staff in a letter that the company would be undertaking “one of the hardest actions” to pursue a more sustainable financial trajectory, including significant layoffs. Bloomberg had previously reported the dismissal of about 40 Tidal employees.

In his note, Dorsey underscored his intent to impose “constraints” on the company’s growth, implying that Tidal will not be the only Block platform to experience staff reductions.

Before this, Block employees had been apprised of a projected 10% reduction in workforce in the forthcoming months. Given the current workforce of roughly 13,000, this suggests that over 1,000 employees stand to lose their jobs.

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Dorsey vowed to improve communication during this transition within the company, promising that team leaders would provide timely updates about changes and cuts “as they occur”. However, he did not elaborate on the reasons behind these decisions in his note.

Why It Matters: Last month, Dorsey communicated to his staff his decision to abandon annual performance assessments in favor of immediate feedback and potential terminations, among other adjustments.

The forthcoming layoffs at Block reflect the company’s drive toward financial sustainability. The move also marks a significant shift in the company’s growth strategy, with Dorsey emphasizing the need for “constraints.”

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Photo courtesy: TED Conference on Flickr