In a significant restructuring move, Block, the fintech company co-founded by Jack Dorsey, has announced the layoff of 931 employees, which constitutes approximately 8% of its workforce. This decision, communicated through an internal email on March 25, 2025, signals a shift in the company's strategic focus amidst a challenging economic landscape.
Block, known for its popular platforms Cash App and Square, has been navigating a tumultuous period marked by declining stock performance and slowed revenue growth. According to reports, Block’s shares have plummeted by 29% this year, reflecting broader struggles within the tech industry. The company's gross profit growth has also decelerated, with a year-over-year increase of just 14% in the last quarter of 2024, down from 22% in the same quarter of 2023.
Dorsey’s email, characterized by its informal, all-lowercase style, emphasized that the layoffs were not financially motivated nor aimed at replacing employees with artificial intelligence. Instead, he stated, "none of the above points are trying to hit a specific financial target, replacing folks with AI, or changing our headcount cap." Dorsey outlined that the layoffs were driven by the need to realign the company’s strategy, raise performance standards, and flatten the organizational hierarchy.
Among those affected by the layoffs are 80 managers, 391 employees deemed "off strategy," and 460 workers identified as underperforming. Additionally, 193 managers will transition to individual contributor roles, and the company will close 748 open job positions, except for those already in the offer stage and critical operational roles.
The timing of these layoffs follows a previous round of job cuts in early 2024, when approximately 1,000 employees were let go. As of December 2024, Block's workforce stood at around 11,372 employees, suggesting that these latest cuts are part of a broader strategy to streamline operations and adapt to the rapidly evolving fintech landscape.
In his communication, Dorsey acknowledged the difficulties of the decision, stating, "this is the toughest part of my job." He stressed the urgency of the reorganization, noting that the company had fallen behind in its actions and needed to move quickly to remain competitive. "When we know, we should move, and there hasn't been enough movement," he added.
The fintech sector has experienced explosive growth in recent years, with revenues surpassing $39 billion between 2018 and 2023 and projections estimating it will reach over $1.5 trillion by 2030. However, the industry is also facing increasing scrutiny and challenges, particularly surrounding the crypto market, where Block had previously invested heavily.
Block’s crypto arm, known as TBD, was once hailed by Dorsey as a frontier of decentralized digital currency. However, in November 2024, he announced plans to “wind down” this division, which has since been officially closed. This shift reflects a broader trend within Block as it pivots from ambitious crypto endeavors to more traditional fintech services, including buy-now-pay-later schemes.
Amidst these changes, a report by Hindenburg Research in 2023 raised serious concerns about Block’s practices, alleging that the company had overhyped its user counts, facilitated fraud, and preyed on low-income users. The report claimed that Block’s "instant deposit" feature was a form of predatory payday loan that contributed significantly to the app's revenue. This scrutiny has added pressure on Dorsey and his leadership team as they navigate the company's future.
While Dorsey has positioned these layoffs as necessary for future growth, industry experts have pointed out that they reflect a larger pattern of re-evaluation among high-growth tech companies. Alvin Ma, an adviser at PerksBar, remarked on LinkedIn that Block must remember its roots as a nimble startup to stay competitive. Meanwhile, Malte Karstan, an e-commerce expert, noted that even visionary leaders like Dorsey face the harsh realities of scaling innovation while managing costs and accountability.
The layoffs at Block are part of a larger trend in the tech sector, where more than 22,000 workers have been laid off in 2025 alone. Companies such as Siemens, HelloFresh, TikTok, NASA, and eBay have also announced significant job cuts, as the industry grapples with recession fears and the increasing adoption of AI tools.
As Block moves forward, the company’s ability to adapt and innovate will be crucial in maintaining its position within the competitive fintech landscape. Dorsey’s commitment to increasing shareholder value and streamlining operations may be essential in navigating this transformative moment for the industry.
In summary, the recent layoffs at Block highlight the challenges faced by the fintech sector as it adapts to shifting market conditions. With a renewed focus on performance and strategic alignment, the company aims to emerge stronger amid the evolving landscape of financial technology.
