Overview of Layoffs at Block, Inc.
Missouri tech mogul Jack Dorsey, co-founder of Twitter, has announced significant layoffs at his financial services company, Block, Inc., which encompasses brands like Square, Cash App, and TIDAL. The company is reportedly letting go of 8% of its staff, translating to over 900 employees terminated due to a strategic shift.
Image: A Square payment system is used in a Springfield store. The parent company, Block, Inc., just announced sweeping layoffs that included nearly 70 Missouri-based workers. (Photo by Ryan Collins)
Impact on Missouri
The layoffs will notably affect Dorsey’s home state, with nearly 70 remote workers in Missouri set to lose their jobs by the end of May. These cuts span across all departments within the tech services company. Although Block is headquartered in California, it maintains a significant presence in Missouri, with approximately 775 employees linked to the state, making up nearly 8% of U.S. accounts associated with Block.
Image: Block, Inc. co-founder Jack Dorsey, a Missouri native. Dorsey co-founded Twitter in 2006 before moving on to Block, parent company of Square, Cash App, and TIDAL. (Photo from Block, Inc.)
Reasons Behind the Layoffs
In a company-wide email, Dorsey clarified that these layoffs are not due to financial difficulties or a shift towards artificial intelligence replacements. Despite this, the past year has seen Block’s stock price drop nearly 35%, closing at $55.33 as of March 23.
The company has faced challenges in the competitive landscape of financial services, prompting these strategic workforce reductions.
Block continues to navigate these turbulent waters while aiming to restructure and refocus its business strategies in the tech sector.
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