Twitter co-founder Jack Dorsey is axing more than 4,000 employees at his fintech company Block — slashing the workforce by nearly half in what he called a necessary shift toward ‘intelligence tools.’
Dorsey sent a letter to shareholders saying the company, which owns Square, Cash App and Afterpay, will reduce 10,205 staff to just under 6,00.
And in a stark warning to the broader job market, Dorsey said he expects many will follow his lead ”within the next year” as technological advances increase.
“I believe the majority of companies will reach the same conclusion and make similar structural changes,” he wrote.
“I’d rather get there honestly and on our own terms than be forced into it reactively.”
In a post on X, the social media platform he previously run as Twitter, Dorsey said he decided to act decisively.
“Repeated rounds of cuts are destructive to morale, to focus, and to the trust that customers and shareholders place in our ability to lead.”
The layoffs were announced alongside the company earnings, with Block announcing $6.25 billion in revenue in the fourth quarter, with profit rising 24% from a year earlier to $2.87 billion.
Block will spend between $450 million and $500 million in severance to employees, the company announced.
The 4,000 employees who lost their jobs will receive 20 weeks of pay plus one additional week for each year of service, equity vested through the end of May, six months of health coverage, their corporate devices, and a $5,000 transition payment.
Workers outside the U.S. will receive comparable support in line with local laws.
