Report: Block Aims to Reduce Workforce to 12,000 This Year

Block is reportedly cutting jobs as part of its previously announced effort to limit the size of its workforce to 12,000 employees.

The company announced that goal in November during an earnings call, saying it aimed to boost earnings by reducing costs, and it started cutting jobs on Tuesday (Jan. 30), Bloomberg reported Tuesday.

Block did not immediately reply to PYMNTS’ request for comment.

The company did not specify how many jobs will be affected, according to the report. It said it will reduce its workforce to 12,000 by the end of the year.

Jack Dorsey, co-founder of Block, announced that plan during a Nov. 2 earnings call, about a month after he assumed the role of CEO.

“[We are] creating an absolute cap on the number of people we have at the company, held firm at 12,000 people until we feel the growth of the business has meaningfully outpaced the growth of the company. We know the inverse is true today,” Dorsey said at the time in his shareholder letter.

The report of Block beginning its job cuts comes on the same day that PayPal said it will eliminate about 2,500 positions, or about 9% of its workforce, this year as it aims to “right-size” the company. PayPal had cut 2,000 jobs a year earlier.

PayPal CEO Alex Chriss said in a Tuesday letter to staff that the new round of cuts is part of the company’s efforts to “execute faster and ensure we are focused on solving our customers’ most critical needs and problems.”

During Block’s November earnings call, Dorsey also said the company is working to accelerate its growth via artificial intelligence (AI), a strong focus on verticals and leaning into banking.

In another recent move, Block said in December that it launched its self-custody bitcoin wallet BitKey in 95 countries, offering a way to expand access to self-custody.

BitKey uses three keys to secure bitcoin, with any two of them needed to move coins or approve other security-related functions. This solution eliminates the need for people to remember long passwords or use a complex set of devices.