Block Inc. Cuts Over 1,000 Jobs Amid Streamlining Operations; Continues Bitcoin Focus
Summary:
Block Inc., co-founded by Twitter's Jack Dorsey, has reportedly laid off over 1,000 employees. The layoffs affect about 10% of the firm's workforce, hitting staff from Block's Cash App, Foundational, and Square divisions. Dorsey communicated the firm's preference for taking immediate action rather than prolonging the process. The cuts come about two months after Block announced its plans to launch a Bitcoin self-custody wallet. The firm reported a $5.62B revenue for Q3 2023 with a $44M profit from Bitcoin holdings.
Block Inc., the financial payment processing company established by Jack Dorsey, the creator of Twitter, has reportedly terminated the contracts of more than 1,000 employees. As per a Business Insider report from January 30, Block abruptly ended the employment of a significant number of colleagues in a single day, aiming to streamline its financial operations. The job terminations impacted staff across Block's Cash App, Foundational, and Square divisions, accounting for nearly 10% of the company's employee base.
"We opted to carry out the job cuts at the same time rather than spreading them out over time, considering it wasn't fair to either the individuals or the company," Dorsey communicated to his team at Block. "Once we realize necessary action is needed, we prefer to take prompt action instead of delaying."
Many who recently exited Block took to LinkedIn to share their farewell messages. Shayna Bulluck, who served as the company's internal mobility manager since March 2023, stated, "Am I shocked at the news? Not entirely - the company had hinted at upcoming reductions last year - but I was undoubtedly hoping that my team and myself would dodge the bullet. Unfortunately, the inevitable cuts reached our door."
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The workforce reductions come roughly two months post Block's announcement of its intention to launch a Bitcoin self-custody wallet. The enterprise recorded a revenue of $5.62 billion for Q3 of 2023, generating a $44 million profit on its Bitcoin assets. Over the past quarter, other U.S. companies also reported substantial layoffs as part of their cost-cutting measures, including asset management firm BlackRock, livestreaming provider Twitch, and digital payment platform PayPal.
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Published At
1/30/2024 11:34:03 PM
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