Ex-X CEO Jack Dorsey’s fintech lays off 1,000 employees: All the details

Block, the financial services company owned by Jack Dorsey, is to cut nearly 1,000 jobs, affecting staff at its Cash App, Afterpay and Square subsidiaries.

According to Insider, approximately 1,000 people, or 10% of Block’s workforce, are affected by this decision.

“We thought it was best to do it immediately rather than haphazardly separate them, which seemed unfair to neither the individual nor the company. When we know action is needed, we want to take action immediately rather than letting things drag on forever,” Dorsey wrote in an internal memo to employees.

During last year’s earnings call, Block said it would reduce headcount to an “absolute cap” of 12,000 by the end of the year from 13,000 in the third quarter of 2023. According to TechCrunch, revenue from peer-to-peer payment service Cash App has dropped significantly.

Meanwhile, Afterpay, the “buy now, pay later” (BNPL) service acquired by Block for $29 billion in 2021, has suffered heavy losses. Square also faces competition from many fronts, including from Fiserv’s Clover, Toast and Stripe.

Block reported revenue of $5.62 billion in the third quarter of 2023, with profits from its Bitcoin holdings of $44 million.

Last September, Dorsey was named principal and chairman of Block (formerly Square), which he co-founded in 2009. Dorsey’s title was changed from “CEO, President and Chairman” to “Block Principal and Chairman,” effective immediately.

“Dorsey’s role and responsibilities will not change and he will continue to serve as the company’s CEO,” Bullock said in a filing with the U.S. Securities and Exchange Commission (SEC).

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

(This article has not been edited by News18 staff and is published by IANS, the associated news agency)