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- Jack Dorsey’s Block is making another round of layoffs.
- The latest severance package offers US workers up to 90 days of pay, plus at least seven weeks’ severance.
- Workers who sign and follow terms of a separation agreement will receive a $5,000 one-time payment.
Block employees in the US who were hit in the company’s latest round of cuts will receive at least 60 days of pay, plus severance.
Those workers are eligible for at least seven weeks of base pay, according to an internal FAQ document viewed by Business Insider, with an additional week of pay for every year an employee worked at Block.
The fintech company distributed the document as part of Block’s second round of layoffs this year. It told some workers on Wednesday that it was eliminating their roles, according to an email seen by Business Insider. The exact scale of the cuts wasn’t immediately clear.
A Block spokesperson declined to comment.
Affected US workers who sign a severance agreement will get another 30 days of pay without working, for a total of 90 days, the FAQ said. In terms of healthcare benefits, they will receive three months of COBRA premium coverage for themselves and enrolled dependents.
These workers will also receive a one-time $5,000 payment, which the company said was for transition assistance.
Employees outside the US would receive different severance packages depending on location, the document said.
The terms outlined in the 20-page FAQ document appear to be structured differently than those offered in February, when the company slashed more than 40% of its workforce. At the time, CEO Jack Dorsey said laid-off workers would receive 20 weeks of salary plus an additional week for each year at the company.
Adding the 90 days’ pay without working and the minimum of seven weeks of severance is roughly equivalent to the 20 weeks of salary Block offered in February, before the additional payment based on tenure.
There are some differences in the other benefits. The February package included six months of healthcare coverage, whereas the company’s latest FAQ says it will offer three months of COBRA premium coverage for US workers and their enrolled dependents.
Both rounds of cuts included a $5,000 payment, which Block referred to as transition assistance.
Eligible workers will also receive a prorated payment in place of an April 2027 retention bonus, according to the document.
The company said the benefits are contingent on workers signing — and adhering to — the separation agreement.
Block isn’t the only tech firm making reductions. Canva this week said it would let go of 22% of its workforce as part of a reorganization. Affected employees are due to get at least six months’ pay.
And at the website-building company Squarespace, which said it’s cutting 19% of staff, workers will get at least 16 weeks of base pay plus added time based on tenure as well as benefits through May next year.
Unlike the prior reductions, which Dorsey said were due in part to advances in how much work AI could take on, the newest cuts didn’t mention AI. Instead, in the email to staff, Block referred to “using better tools to handle routine tasks” and “refocusing our teams’ time on complex cases and decisions.”
The layoffs come after the company posted better-than-expected third-quarter profits amid growth at Square, its seller-services business, and Cash App, its consumer financial services app.
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