- Block Inc., led by Jack Dorsey, has started laying off employees as part of a previously announced restructuring plan to cut costs by 10% through layoffs, spending cuts, and reorganizing products.
- The layoffs, affecting around 1,000 employees globally, come amid a prolonged downturn in cryptocurrency that has hurt demand for Block’s crypto products and services.
- Even with a reduced workforce, Block remains committed to developing new crypto services and making Bitcoin more mainstream, while shifting focus to high-growth products like its Cash App.
Block Inc., the financial services and digital payments company led by Jack Dorsey, has begun laying off employees as part of a broader restructuring plan announced earlier this year.
Background on Block’s Restructuring Plan
In January 2024, Block revealed plans to reduce expenses by around $200 million in 2023 and by up to $500 million by the end of 2024. The cuts represent around 10% of Block’s global workforce.
Block aims to achieve these cost reductions through a combination of layoffs, limiting corporate spending, and reorganizing its product portfolio. The restructuring plan comes amid a prolonged downturn in the cryptocurrency market that has weighed on demand for Block’s various digital currency products and services.
Details on the Staff Layoffs
The staff reductions began in late January, with layoffs hitting multiple departments across the organization. Block has declined to specify the exact number of employees being let go, but the cuts are expected to affect around 1,000 people globally.
Employees in Block’s hardware wallet division and its TIDAL music streaming service appear to be among those impacted. There are also reports of layoffs within Block’s core product and engineering teams.
In an email to staff, Block CEO Jack Dorsey said the job cuts were a “last resort” amid the need for cost reductions. He promised to provide laid-off employees with severance pay and career transition support.
Block’s Future Plans
Even with a reduced headcount, Block remains committed to developing new cryptocurrency services and making Bitcoin more accessible to mainstream consumers and merchants.
However, the company is shifting its focus towards products like its Cash App digital payments service, which has high growth potential compared to Block’s stagnating cryptocurrency initiatives.
Block plans to provide more details on changes to its product roadmap and long-term growth plans when it reports quarterly earnings results in early February. The upcoming earnings call will offer insight into how Block aims to rebound from the crypto downturn in 2023 and beyond.
