Cash App Layoffs 2024 as Block has decided to reduce its headcount from 13,000 in Q3 2023 to an “absolute cap” of 12,000 by the end of this year. The layoffs were executed this morning and affected staff in the Cash App, foundational, and Square arms of Block. Reportedly, around 1,000 people — or 10% of Block’s headcount — were impacted.
It’s Lay Off Season Again in Big 2024. If you are working at Cash App, here’s some more info if you wanna learn more.
Cash App Layoffs in 2024
According to TechCrunch, the layoffs affected around 1,000 people, or like 10% of Block’s headcount.
The layoffs will be executed across various arms of Block, including Cash App, foundational, and Square divisions.
You should also know that Cash App has experienced significant growth in recent years, and these layoffs may be a necessary step to ensure that the company can continue to grow and thrive in the years to come.
Block CEO Jack Dorsey told his staff in a note that a “large number” of workers were being laid off and this is Block’s second layoff in recent years, and it’s clear that the company is taking action to ensure that it remains competitive in the fintech landscape.
factors contributed to the decision to layoffs at Cash App this year
The decision to lay off staff at Cash App was not made lightly.
According to an internal memo from CEO Jack Dorsey, the growth of Block has far outpaced the growth of its business and revenue.
In the internal note, Dorsey justified the swift and comprehensive action, stating that “when we know we need to take an action, we want to take it immediately, rather than let things linger on forever.”
The decision to lay off staff at Cash App is part of Block’s broader strategy to restructure its business and focus on growth. The company has suffered a difficult, downward-trending year and change, with revenues from Cash App declining steeply.
Several factors contributed to the decision to lay off staff at Cash App this year. First, the fintech and broader tech sector has seen tens of thousands of workers let go in the past few weeks.
PayPal, for example, announced that it would fire some 2,500 people or 9% of the company. Brex, the expense management startup, laid off 282, or 20% of its staff. And Treasure Financial, a platform offering cash management software for businesses, let 14 employees go, leaving the company with about a third of its former workforce.
Cash App’s revenues have declined steeply.
According to TechCrunch, the layoffs affected staff in the Cash App arm of Block. At the same time, Cash App’s revenues climbed 34% to $3.58 billion, while Square’s revenues reached $1.98 billion, a YoY increase of 12%.
Block’s Bitcoin revenue has fallen corresponding with the fall in the price of the cryptocurrency last year. However, that has recovered recently.
Square faces growing competition on multiple fronts, including from Fiserv’s Clover, Toast, and Stripe. Investors are displeased, and Square stock retreated around 30% from January 2023 to October as Block founder Dorsey took the reigns from ex-Square head Alyssa Henry.
Strategic Shifts in Block Inc
- Strategic Shifts: Block Inc. underwent significant strategic shifts following co-founder Jack Dorsey’s restructuring plan in 2023, aiming to make the company leaner and more efficient.
- Workforce Reduction: The company laid off over a thousand employees, nearly 10% of its staff, to align staffing with its current business state.
- Affected Divisions: Cuts impacted various divisions including Cash App, Foundational, and Square, with a focus on eliminating redundancies and increasing efficiency.
- Cryptocurrency Focus: Block heavily bet on cryptocurrency, unveiling plans for a self-custody Bitcoin wallet while continuing to operate a Cash App for Bitcoin and stock trading.
- Revenue Growth: Despite the changes, the company’s revenue reached $5.62 billion in Q3 2023, indicating continued financial strength.
- Resource Optimization: Strategic shifts aimed at optimizing resource allocation and streamlining operations in response to market dynamics.
- AI Development: Block focused on enhancing generative AI features, developing HiFi and BitKey hardware storage solutions.
- Global Performance Improvement: Management worked on improving performance and profitability across global operations.
- Partnerships: Exploring partnerships with tech giants like Google and Amazon to expand reach and marketing capabilities.
- Industry Trend: The layoffs reflect a broader trend in the tech industry, where many firms are downsizing to maintain competitiveness and agility in the fintech space.
How many employees were affected by the Cash App layoffs in 2024?
According to various sources, the Cash App layoffs in 2024 affected approximately 1,000 employees, which constitutes a substantial 10% of the company’s overall headcount.
departments within Cash App were most impacted by the Layoffs
The layoffs affected staff in the Cash App, foundational, and Square arms of the company.
I think it is unclear which departments within Cash App were most impacted by the 2024 layoffs.
Has Cash App announced any plans for restructuring following the layoffs?
As of now, there is no official word on whether Cash App has announced any plans for restructuring following the layoffs.
severance packages offered to the employees laid off
We tried to contact Cash App and received no reply from them. It is unclear what severance packages were offered.
