- Block will reduce headcount by at least 10% by the end of this year
- PayPal, BlackRock, and Twitch announced similar measures
Fintech and blockchain firm Block Inc. plans to cut its staff drastically throughout the year through a series of reorganizations.
Block Inc., the Jack Dorsey-led blockchain and payments firm, has started laying off employees this week as part of a previously communicated plan to reduce headcount by at least 10% by the end of this year, CoinDesk wrote.
Part of a trend
The layoffs are happening about two months after the company announced plans to launch a self-custody Bitcoin wallet. The company’s revenue was $5.62 billion in the third quarter of last year, and its Bitcoin brought it a profit of $44 million.
Leading financial and fintech firms like PayPal, BlackRock, and livestreaming platform Twitch announced similar measures to reduce headcounts in the last quarter.
Block announced last year it would reduce its employees from 13,000 to a maximum of 12,000 by the end of 2024. Its companies include Cash App, Square Inc., Tidal, and TBD, a Bitcoin-focused unit.
Growth has “outpaced” revenue
Block did not confirm the exact number of people who would be laid off this week, but told CoinDesk its overall targets remained the same. The company will reach them via performance adjustments and other reorganization measures.
In November, Business Insider wrote that according to Dorsey, the growth of Block’s size had “far outpaced” its revenue and business growth. In a note to his staff, he said it was better to lay off company employees at once rather than spacing out layoffs randomly, which would be less fair to those affected. The company’s management does not want to let things “linger.”
Block rebranded from Square in 2021 to draw attention to a shift in the direction of blockchain technology. Dorsey resigned as CEO of then-Twitter in 2021 but remained at Block, where he has remained vocal about Bitcoin’s potential.
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