Jack Dorsey's layoff memo is an ominous sign of what could come next

"I'd rather take a hard, clear action now and build from a position we believe in than manage a slow reduction of people toward the same outcome. Repeated rounds of layoffs are destructive to morale, focus, and to the trust of customers and shareholders."

"Because repeated cuts create layoff fatigue and chronic anxiety, as well as drops in morale and productivity, it's better to make a single reduction rather than piecemeal ones. This is a pretty extreme example in terms of the amount of people being let go all at once, but the packages are relatively generous."

Block CEO Jack Dorsey announced a massive workforce reduction, cutting the company from over 10,000 employees to just under 6,000 despite strong business performance and growing profits. Dorsey justified the decision by arguing that repeated layoff rounds damage morale, focus, and stakeholder trust. He chose one decisive cut over gradual reductions, stating he prefers clear action to manage slow workforce reduction. This approach differs from typical tech industry patterns of incremental layoffs. Management experts note that while the scale is extreme, the generous severance packages and single-action approach may reduce layoff fatigue and chronic anxiety compared to repeated cuts.

Read at Business Insider