Adrian JohnsonTLDR:
- Jack Dorsey’s fintech company, Block, is laying off 1,000 employees, impacting its subsidiaries Cash App, Afterpay, and Square.
- The decision was made to perform the layoffs all at once instead of spacing them out.
- The company had previously announced plans to reduce its headcount from 13,000 to 12,000 by the end of the year.
- Revenues from Cash App have declined, and Afterpay has posted significant losses.
- Square faces competition from companies like Clover, Toast, and Stripe.
Jack Dorsey’s financial services company, Block, is laying off approximately 1,000 employees, which will affect its subsidiaries Cash App, Afterpay, and Square. The decision to perform the layoffs all at once was made in order to avoid unfairly prolonging the process for the affected individuals and the company. Block had previously announced plans to reduce its headcount from 13,000 in Q3 2023 to a maximum of 12,000 by the end of the year.
The decline in revenues from Cash App, the company’s peer-to-peer payments service, has been a major factor in the decision to lay off employees. Additionally, Afterpay, which Block acquired for $29 billion in 2021, has experienced significant losses. Square is also facing competition from other companies such as Clover, Toast, and Stripe.
In terms of financial performance, Block reported $5.62 billion in revenue for Q3 2023, with $44 million in profit from its Bitcoin holdings. In September of that year, Jack Dorsey, the former CEO of Twitter, was appointed as the Head and Chairperson of Block. The company also changed its name from Square to Block in December 2021.
It is important to note that this article has been published by News18 and has been syndicated from a news agency feed.