Another day that ends in “y” means that hundreds more people in the tech sector must be unemployed.
According to sources, Block is the most recent big IT business to lay off hundreds of employees within its workforce. It is stated that CEO Jack Dorsey warned staff that the business is terminating a “large number” of them, with Cash App, Square, and the foundational (i.e. operations) teams suffering the brunt of the impact being the most significant. Block is reportedly laying off up to one thousand employees, as reported by a source from Business Insider.
According to the memo that Dorsey apparently drafted, the corporation is continuing to reduce its expenses. It terminated approximately forty members of the Tidal team in the month of December. Block stated in the previous year that it intended to reduce its workforce to approximately 12,000 employees, which would be a decrease from the approximately 13,000 employees it had in late 2023. Block was approached by Newtechmania in order to obtain confirmation of the layoffs made.
In spite of the fact that it was initially anticipated that the layoffs would be carried out over the course of several months, it has been stated that management decided against this plan and instead chose to carry them out simultaneously. Can you explain why there is so much going on in only one day? According to what is believed to have been said in Dorsey’s message, all of these teams felt confident in the path that they were following and were prepared to take action within the same two to three weeks. In order to avoid arbitrarily spacing them out, which did not appear to be fair to either the individuals or the company, we came to the conclusion that it would be more beneficial to do it all at once. When we are aware that we need to take a certain action, we want to take it right away rather than allowing things to drag on for an indefinite amount of time.
Tens of thousands of employees have been laid off in the technology sector over the course of the past year or two, with thousands of those employees leaving their jobs just this month alone. Companies that have been affected include Unity, Twitch, Amazon, Meta, Microsoft, eBay, and Google. Additionally, on Tuesday, it was revealed that PayPal is laying off approximately 2,500 employees.