Block Cuts 8% of Staff Citing ‘Strategy' and ‘Performance' Reasons

Group 1 - Block has laid off 8% of its workforce, impacting 931 employees, as part of a strategic restructuring effort [1][2] - The layoffs include 391 employees for strategic reasons and 460 for performance issues, along with 80 managerial positions to flatten the organization [1][3] - The company is also closing several hundred open positions, focusing on crucial operations and key leadership roles [2] Group 2 - The layoffs are not aimed at achieving specific financial targets or replacing staff with AI, but rather to enhance strategy and performance [3] - Block had previously eliminated 112 positions in a cost-cutting effort early last year [3] - As of December 2024, Block had 11,300 staff members worldwide, with a cap set at 12,000 until business growth significantly outpaces company growth [4] Group 3 - Block is expanding into direct lending with Square Financial Services receiving FDIC approval to make consumer loans directly through Cash App Borrow [5] - This shift allows Block to retain revenue streams associated with lending, previously done through external banking partners [5] - The move into short-term lending comes as traditional credit access avenues are narrowing, with 29% of subprime consumers facing credit card application denials [6]