Block, founded by Jack Dorsey, is set to lay off over 930 employees while shifting nearly 200 managers to non-management roles, also closing 800 job openings. Dorsey's email highlighted that these changes are not aimed at financial targets or AI replacements but rather at improving performance and flattening the organization to promote agility. The company struggles with a 29% stock decline this year, raising concerns about revenue. This follows a previous layoff round in early 2024, illustrating Dorsey’s commitment to steering Block towards a 'startup-like' operational model for efficiency.
Dorsey emphasized the layoffs are not aimed at hitting a financial target, emphasizing a need to flatten the organization for better performance and speed.
He noted the necessity of timely actions in restructuring, stating it's unfair to individuals and the company to delay necessary organizational changes.
Reflecting on earlier layoffs, Dorsey reiterated the need for Block to regain a startup mentality to improve agility and performance in operations.
The company's stock has dropped 29% this year, raising concerns about revenue growth and profitability amidst ongoing operational adjustments.
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