Twitter founder and CEO of fintech Block Jack Dorsey announced the layoff of almost half of his current company’s employees — more than 4,000 employees out of 10,000 working at this fintech.
Twitter founder and CEO of fintech Block Jack Dorsey announced the layoff of almost half of his current company’s employees — more than 4,000 employees out of 10,000 working at this fintech.
Dorsey made the corresponding statement on the social network he created himself, which became X after being purchased by Elon Musk.
«We are making one of the most difficult decisions in our company’s history: reducing our organization by nearly half, from more than 10,000 people to just under 6,000,» Dorsey wrote.
At the same time, he announced that the laid-off employees will have very significant financial support — they will receive their salary for 20 weeks + 1 week for each year of employment.
Also, such Block employees will have access to corporate medical care for six months after their dismissal, will keep their corporate devices, and «$5,000 for everything necessary for this transition.»
At the same time, Dorsey explained the reasons for this decision, noting that the company’s financial condition has nothing to do with it.
«We are not making this decision because of problems. Our business is strong. Gross profit continues to grow, we continue to serve more customers, and profitability is improving. But something has changed. We are already seeing that the analytical tools we are building and using, combined with smaller teams, are enabling a new way of working that is fundamentally changing how we build and run a company. And this process is accelerating rapidly,» he hinted at the reasons for the large-scale cuts, including the increasing role of AI in the company.
According to him, the CEO of fintech Block was faced with two options: either gradually reduce the staff over months or years, or «be honest and act now.»
«I chose the latter. Repeated rounds of cuts destroy morale, focus, and the trust that customers and shareholders have in our ability to lead. I would rather take tough, clear action now,» Dorsey explained.
Recall that in 2022, Twitter founder Jack Dorsey presented a new social network on the blockchain and with controlled algorithms, Bluesky Social.
However, in 2024, Dorsey stated thatBluesky was «repeating all the mistakes» of his previous project.
