Financial technology firm Block, led by co-founder and CEO Jack Dorsey, has announced significant workforce reductions in a move aimed at streamlining operations and sharpening strategic focus. While job cuts in the technology sector often trigger backlash and uncertainty, Dorsey’s handling of the announcement has drawn notable praise from professionals across LinkedIn and other social media platforms.
Block, the parent company of Square, Cash App and music streaming platform Tidal, said the restructuring is designed to reduce management layers, improve engineering velocity and align teams more directly with product priorities. The company has been navigating a more disciplined cost environment amid slower growth across parts of the fintech sector.
The company is downsizing from a workforce of 10,000 to 6,000 people.
Unlike many corporate downsizing announcements that rely on carefully worded press statements, Dorsey addressed the layoffs in a direct internal message that was later shared publicly. In it, he outlined the business rationale behind the cuts, acknowledged the human impact of the decision and emphasized accountability at the leadership level.
On LinkedIn, professionals described the communication as unusually transparent. Many highlighted that Dorsey avoided euphemisms such as “rightsizing” or “resource optimization,” instead plainly stating that roles were being eliminated to simplify the organization and improve execution. He also clarified that performance was not the primary driver in many cases — a distinction that can help affected employees avoid stigma in future job searches.
Another aspect that drew positive reactions was the clarity around severance and transition support. According to the company, impacted employees would receive structured severance packages, healthcare coverage for a defined period and assistance in job placement. Commentators noted that providing clear next steps and tangible support reduces uncertainty and preserves dignity during an otherwise destabilizing moment.
The affected 4,000 employees will each receive a 20 weeks salary and USD 5,000 transition fund.
The tone of the announcement also stood out. Rather than delegating the communication to HR or issuing a detached corporate memo, Dorsey signed the message personally. Leadership experts on social media argued that visible executive ownership during layoffs signals responsibility rather than deflection — a contrast to situations where senior leaders appear insulated from workforce reductions.
The reaction has inevitably invited comparisons with other technology giants that have implemented sweeping layoffs in recent years, including Amazon. Amazon’s workforce reductions, which affected tens of thousands of employees globally, were widely seen as financially driven responses to post-pandemic overexpansion. While Amazon also provided severance and transition assistance, critics said its communication style was more procedural and less personal, often delivered through formal announcements and manager-led briefings.
Analysts note that perception plays a crucial role in how layoffs are received. In high-growth tech cultures, abrupt job cuts can damage employer brand and morale if employees feel blindsided. By contrast, a transparent explanation that links workforce decisions to long-term strategy can frame layoffs as structural recalibration rather than reactive crisis management.
Block’s approach does not eliminate the hardship for those losing their jobs. However, social media commentary suggests that professionals increasingly value candor over corporate polish. In an era where internal memos quickly become public, authenticity is seen as a strategic asset.
For Dorsey, whose leadership style has often emphasized decentralization and operational simplicity, the layoffs appear aligned with a broader push toward leaner organizational design. Whether the restructuring delivers improved financial performance remains to be seen. But in the court of public opinion — particularly among knowledge workers active on LinkedIn — the communication itself has set a benchmark for how companies can handle difficult workforce decisions with clarity and respect.
