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

Tech Crunch - Mar 25th, 2025

Fintech giant Block, led by CEO Jack Dorsey, announced the layoff of 931 employees on Tuesday. This decision was communicated via an internal email and classified into three categories: strategic realignment, performance issues, and management restructuring. Specifically, 391 roles were cut for strategic reasons, 460 due to performance evaluations, and 80 managerial positions were eliminated to streamline the organizational hierarchy. Additionally, 193 managers will transition to individual contributor roles. Dorsey clarified that these layoffs were not financially driven nor aimed at replacing employees with AI. Furthermore, Block is closing all 748 open positions, barring a few critical roles.

The layoffs reflect Block's shifting strategic priorities as it adjusts its workforce to align with new objectives. This move follows a previous round of layoffs in January 2024, which saw around 1,000 job cuts. With the current changes, Block aims to elevate performance standards and expedite strategic initiatives. The company, which owns Cash App and Square, continues to navigate the challenges of the financial services sector amid a rapidly evolving digital landscape. The reduction in workforce underscores the ongoing pressures to adapt and innovate in the fintech industry. Block's latest actions reveal the delicate balance between workforce optimization and maintaining operational efficiency.

Cash App Layoffs Fintech Jack Dorsey Block Square Organizational Restructuring

Story submitted by Fairstory

RATING

6.4

Moderately Fair

Read with skepticism

The article provides a timely and relevant account of recent layoffs at Block, offering insights into the company's strategic decisions and management's rationale. While it is mostly accurate in presenting the facts, the reliance on a leaked message and unnamed sources affects its verifiability and source quality. The article lacks balance, as it predominantly reflects the company's perspective without including employee or expert viewpoints. Despite these limitations, the article is clearly written and accessible, making it comprehensible to a broad audience. Its potential to influence public opinion and spark discussion is notable, though it could be enhanced with more diverse perspectives and detailed context. Overall, the story effectively informs readers about a significant development in the tech industry but could benefit from greater transparency and balance.

Accuracy

The article provides specific details about the layoffs at Block, including the number of employees affected and the reasons for the layoffs. These details, such as the categorization of layoffs into strategy, performance, and hierarchy, are clearly outlined in the article. However, the story lacks direct confirmation from Block or other authoritative sources, which affects its verifiability. While the article mentions a leaked message and a source familiar with the matter, these are not as reliable as official statements. The denial of financial motives or AI replacement by Jack Dorsey is presented as a claim that needs further evidence. Overall, the article is mostly accurate but lacks some direct source confirmations.

Balance

The article primarily presents the perspective of Block's management, particularly Jack Dorsey's rationale for the layoffs. It does not provide viewpoints from employees affected by the layoffs or industry analysts, which would offer a more balanced view of the situation. The lack of employee perspectives or expert analysis may lead to an imbalance, presenting the company's narrative without sufficient scrutiny or alternative viewpoints.

Clarity

The article is clearly written, with a logical flow and straightforward presentation of information. The language is neutral and concise, making it easy for readers to understand the key points. However, the lack of detailed explanations for some claims, such as the specific strategic shifts or performance criteria, could affect comprehension for readers seeking deeper insights.

Source quality

The article relies on a leaked message and an unnamed source familiar with the matter, which raises questions about the reliability and credibility of the information. The absence of direct quotes from Block or official press releases diminishes the authority of the sources. The use of anonymous sources and lack of diverse viewpoints may affect the impartiality and credibility of the reporting.

Transparency

The article lacks transparency in terms of the methodology used to gather information. It does not disclose how the leaked message was obtained or the identity of the source familiar with the matter. The article could improve transparency by providing more context on how the information was verified and any potential conflicts of interest or biases that may affect the reporting.