Block announces new layoffs, details severance package for US employees

Employees who agree to the terms of a separation agreement will also receive a one-time payment of $5,000, designated as transition assistance. Those affected will receive at least 60 days of pay, with an additional week of pay for each year of service at Block. Healthcare benefits will include three months of COBRA premium coverage for employees and their dependents.

The details, outlined in a recent internal FAQ document, differ from the terms offered in February when Block reduced its workforce by over 40%. At that time, employees received 20 weeks of salary plus additional pay based on tenure. The current package, combining 90 days of pay and seven weeks of severance, is roughly equivalent to that prior offering.

In an email to staff, Block cited “using better tools to handle routine tasks” and “refocusing our teams’ time on complex cases and decisions” as reasons for the cuts, a departure from previous explanations that included the impact of artificial intelligence. The exact number of employees affected has not been disclosed.

Block’s actions follow similar moves by other tech companies. Canva recently announced it would reduce its workforce by 22%, offering at least six months’ pay to affected employees. Squarespace is cutting 19% of its staff, providing at least 16 weeks of base pay and benefits through May of next year.

A Block spokesperson declined to comment on the layoffs.