Jack Dorsey’s payments company Block — which powers the point-of-sale software on many iPad checkout screens — told staffers this week that as many as 10% will likely be laid off in the approaching months, according to a report.
CEO Dorsey announced the headcount reduction in a companywide memo obtained by Business Insider, where he also admitted that spending on the firm, which operates the favored business payments platform Square, “will not be sustainable.”
“Square’s number of individuals has far outpaced our growth and performance,” Dorsey added despite the corporate experiencing a three-fold increase in profits during the last 4 years.
“Actually, I feel it’s slowing us down and frustrating everyone. Which will not be fair to you all, or our customers,” the 46-year-old tech mogul added.
In the newest quarter, Square — whose software has gained attention for its seemingly ubiquitous requests for suggestions — reportedly processed as much as $46.22 billion price of transactions — the equivalent of $513 million a day — and makes as much as a 3.5% plus 15-cent fee depending if customers use contactless payment or a virtual terminal.
![Block founder and CEO Jack Dorsey -- who also founded Twitter and Cash App -- shared in a company memo that he would be laying off as much as 10% of Block's 13,000-staff workforce in the coming months.](https://nypost.com/wp-content/uploads/sites/2/2023/11/NYPICHPDPICT000001958049.jpg?w=1024)
On Block’s third quarter earnings call last week, chief financial officer Amrita Ahuja said the corporate’s headcount currently lies just over 13,000 people — barely over the 12,400 workforce Block said it had in a Securities and Exchange Commission filing at the tip of 2022.
The roughly 600-staffer increase Block experienced to this point this 12 months was to fill roles for engineering, according to Insider.
Nonetheless, a forthcoming 10% reduction could see as many as 1,300 employees at Block getting pink slips.
An individual accustomed to the corporate told Insider that more like some 1,000 staffers will lose their jobs.
Dorsey said that his workforce “goes to be smaller than we’re today by the tip of next 12 months,” which he plans to achieve “through performance management, scoping our work and restructuring to remove duplication and redundancy,” per the memo obtained by Insider.
Dorsey — who also founded Twitter and Money App — continued: “Subsequently we won’t take a single motion, but fairly look critically at the whole lot we’re doing and act thoughtfully.”
He also noted within the message that it will be “perfectly reasonable” for staffers who want to quit amid news of the headcount reduction, to which Dorsey said he’d “fairly us provide the data than to work secretly at nighttime.”
![Block operates Square, the point-of-sale software -- and seemingly ubiquitous request for tips -- seen on many iPad checkout screens at stores and cafes.](https://nypost.com/wp-content/uploads/sites/2/2023/11/NYPICHPDPICT000071889356.jpg?w=1024)
In its message to shareholders following the discharge of its third-quarter earnings report last week — when Block posted $5.62 in revenue and a 21% year-over-year increase in profits, to $1.9 billion — Dorsey said he’s placing “an absolute cap” on the variety of employees it will have.
That cap will likely be “held firm at 12,000 people until we feel the expansion of the business has meaningfully outpaced the expansion of the corporate. We all know the inverse is true today,” the 46-year-old tech mogul added.
Reps for Block declined to comment beyond the letter and the corporate’s conference call.
Here is the total note Dorsey sent to Block’s workforce, according to Insider: As I said in my note to Block, the expansion of our company has far outpaced the expansion of our business and revenue.
It’s not sustainable. And Square’s number of individuals has far outpaced our growth and performance. Actually, I feel it’s slowing us down and frustrating everyone. Which will not be fair to you all, or our customers.
So, Square goes to be smaller than we’re today by the tip of next 12 months. We’re going to achieve this through performance management, scoping our work, and restructuring to remove duplication and redundancy. Subsequently we won’t take a single motion, but fairly look critically at the whole lot we’re doing and act thoughtfully.
I also consider it’s vital to be upfront and transparent about all this, so that you all could make your individual decisions when you need to. It’s possible you’ll not be up for the uncertainty or shrinking our team, and wish to leave. That’s perfectly reasonable. But I’d fairly us provide the data than to work secretly at nighttime.
Every little thing square-core and I do will likely be done with transparency and easy reasoning you’ll have access to. It’s possible you’ll not agree with our decisions, but we’ll do our greatest to explain why we consider they’re right.
Thanks all,
jack