Read the email Jack Dorsey sent when he cut 931 of Block’s staff

Tech Crunch - Mar 25th, 2025
Open on Tech Crunch

Fintech company Block, led by CEO Jack Dorsey, announced the layoff of 931 employees, representing approximately 8% of its workforce. The decision, communicated through an internal email, is part of an organizational restructuring aimed at aligning with strategic priorities, enhancing performance standards, and simplifying management hierarchy. The layoffs are categorized into three areas: strategic role reductions, performance-based cuts, and management hierarchy flattening. These changes are not driven by financial targets or plans to replace employees with AI, but to improve agility and focus within the company. Block also plans to close 748 open positions, except for those critical to operations or already in advanced hiring stages.

This restructuring marks another significant workforce reduction for Block, following a previous layoff of about 1,000 roles in January 2024. The company's actions reflect broader trends in the fintech industry where companies are adjusting their strategies to remain competitive and responsive to market demands. The implications of this move could be significant for Block's operational efficiency and market position, as it seeks to enhance shareholder value and adapt to the rapidly evolving financial services landscape.

Story submitted by Fairstory

RATING

7.2
Fair Story
Consider it well-founded

The story provides a detailed and accurate account of the layoffs at Block, supported by internal communication from CEO Jack Dorsey. Its strength lies in the clear presentation of facts and timely reporting on a significant corporate event. However, the article could benefit from a more balanced perspective by including reactions from affected employees or industry experts.

While the reliance on a single source limits the depth of the reporting, the story is transparent about its information origin, enhancing its credibility. The language and structure are accessible, ensuring that the information is easily understood by a general audience.

Overall, the article effectively informs readers about Block's strategic decisions and their immediate impact, though it could deepen its analysis by exploring the broader implications for the industry and workforce. This would enhance its potential to engage readers and provoke meaningful discussions about corporate management practices.

RATING DETAILS

8
Accuracy

The story accurately reports the number of layoffs at Block, citing 931 employees, which aligns with the internal communication details. The reasons for the layoffs, including strategic shifts, performance issues, and organizational restructuring, are clearly stated and supported by Jack Dorsey's email. However, the claim that the layoffs are not financially motivated or intended to replace employees with AI is difficult to independently verify without further statements or data from Block.

The article provides specific numbers for the layoffs in different categories (391 for strategy, 460 for performance, and 80 for hierarchy), which adds precision to the report. These figures are consistent with the details provided in Dorsey's email, enhancing the story's factual accuracy. The mention of previous layoffs in January 2024 is also corroborated by past reports, lending credibility to the narrative.

While the story includes a comprehensive account of the layoffs, it relies heavily on a leaked email and lacks direct confirmation from Block, which could affect the verifiability of some claims. The absence of a comment from Block leaves some aspects open to interpretation, particularly regarding the company's financial motivations.

7
Balance

The story primarily presents the perspective of Block's CEO, Jack Dorsey, focusing on his rationale for the layoffs. This provides a clear view of the company's internal reasoning but limits the representation of other perspectives, such as those of the affected employees or industry analysts.

By quoting Dorsey's email extensively, the article aligns closely with the company's narrative, potentially overshadowing alternative viewpoints. The absence of employee reactions or expert opinions on the broader implications of these layoffs results in a somewhat one-sided account.

Including additional perspectives, such as comments from industry experts or employee testimonies, could have provided a more balanced view of the situation. This would help readers understand the potential impacts on the workforce and the industry at large.

8
Clarity

The article is well-structured, with a clear and logical flow of information. It begins with the announcement of the layoffs and follows with specific details from Jack Dorsey's email, making it easy for readers to follow the narrative.

The language is straightforward and free of jargon, ensuring that the information is accessible to a general audience. The use of bullet points and clear categorization of the layoffs by reason (strategy, performance, hierarchy) enhances comprehension.

While the article effectively communicates the key points, it could improve clarity by providing additional context on the broader implications of the layoffs for the company and the industry. This would help readers understand the significance of the story beyond the immediate facts.

6
Source quality

The primary source of information in the article is a leaked email from Jack Dorsey, which is a credible internal document. However, the reliance on a single source without corroborating statements from other company representatives or external experts limits the depth of the reporting.

The story does not cite any additional sources or provide external verification of the claims made in the email. The lack of diverse sources or independent verification may affect the perceived reliability of the information presented.

While the email provides detailed insights into the company's decision-making process, the absence of comments from Block or other authoritative sources diminishes the overall source quality. Including a broader range of sources would enhance the article's credibility and provide a more comprehensive understanding of the situation.

7
Transparency

The article is transparent about the origin of its information, clearly stating that it is based on a leaked email from Jack Dorsey. This disclosure helps readers understand the basis of the claims and assess the reliability of the information.

However, the story does not provide information on how the email was obtained or the potential biases of the source who leaked it. This lack of context may affect the reader's ability to fully evaluate the impartiality of the report.

While the article includes a detailed account of the layoffs and the reasons behind them, it could benefit from more context on the broader industry trends or financial pressures that might have influenced Block's decision. This would provide a clearer picture of the factors impacting the company's strategy.

Sources

  1. https://bestofai.com/article/we-read-the-email-jack-dorsey-sent-when-he-cut-931-of-blocks-staff-techcrunch
  2. https://beamstart.com/news/how-to-tell-if-your-17429375273782
  3. https://ph.investing.com/news/stock-market-news/block-lays-off-931-employees-in-latest-workforce-reduction--techcrunch-1736589
  4. https://www.indmoney.com/blog/us-stocks/meta-google-salesforce-announce-layoffs-2025
  5. https://bestofai.com/article/read-the-email-jack-dorsey-sent-when-he-cut-931-of-blocks-staff-techcrunch