Jack Dorsey fintech firm Block lays off nearly 1,000 employees

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San Francisco. Jack Dorsey’s financial company Block has laid off about 1,000 employees, which will affect the employees of the company’s Cash App, Afterpay and Square subsidiaries.

According to an Insider report, around 1,000 employees, or 10 percent of the company’s workforce, were affected by the decision.

“We know we need to take action, and we want to do it immediately rather than let things sit forever,” Dorsey wrote in an internal memo.

In an earnings call last year, the bloc said it would reduce its headcount from 13,000 in the third quarter of 2023 to 12,000 by the end of this year, TechCrunch reported. Peer-to-peer payment service Cash App’s revenue has declined significantly.

Meanwhile, its ‘buy now, pay later’ (BNPL) service Afterpay, which the block acquired for $29 billion in 2021, has posted serious losses. Square faces competition on several fronts, including Fiserv’s Clover, Toast and Stripe.

The block reported revenue of $5.62 billion in the third quarter of 2023, with a profit of $44 million on Bitcoin holdings.

Last September, Dorsey was appointed head and chairman of The Block (formerly known as Square), which he co-founded in 2009. Dorsey’s designation was changed from Chief Executive Officer, President and Chairperson to Block Chief and Chairperson with immediate effect.

“There will be no changes to Dorsey’s roles and responsibilities and he will continue to serve as chief executive officer of the company,” Block said in a filing with the US Securities and Exchange Commission (SEC).

In December 2021, Dorsey’s financial services company Square announced it would change its name to Block.

–IANS

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