Jack Dorsey’s company, Block, has announced it will lay off nearly half of its employees, amounting to about 4,000 jobs. This move is particularly significant within the competitive tech industry, as it highlights the current trends in workforce reduction.
In addressing the layoffs, Dorsey stated that those affected will receive a severance package that includes 20 weeks of salary, plus an additional week’s pay for each year of service. Employees will also receive healthcare for six months, a $5,000 stipend, and the option to keep their work devices. Stock options will continue to vest until the end of May.
Brooks Holtom, a management professor at Georgetown University, remarked that these packages are “relatively generous” compared to others in the industry. Dorsey has also been commended for taking responsibility for his decisions amid these cuts.
Comparing Block’s severance to other tech companies, Amazon recently laid off 16,000 employees, offering 90 days of pay and benefits, while Meta’s severance for a similar number of employees included a base pay of 16 weeks plus two additional weeks for each year served. Airbnb’s 2020 layoffs provided 14 weeks of base pay and a year of healthcare.
As the situation evolves, it remains to be seen how Block’s approach will influence industry standards moving forward.
