Fintech Block has laid off 931 employees, according to a leaked message from the company, in a move that marks the second major round of job cuts within 15 months. The news was announced to staff in an email from Block's co-founder and CEO Jack Dorsey, who explained that the company is making "some org changes, including eliminating roles and beginning the consultation process in countries where required."

The layoffs are divided into three categories, with 391 people being cut due to "strategy" reasons, 460 people being let go for "performance" reasons, and 80 managers being eliminated to flatten the company's hierarchy. Dorsey emphasized that none of the cuts are related to financial targets or replacing workers with AI, but rather to shifting strategic needs and "raising the bar and acting faster on performance."

The performance-related layoffs are particularly notable, as they involve parting ways with employees who score a "below" or "trending towards below" rating. This move suggests that Block is taking a more stringent approach to performance evaluation, with a focus on streamlining operations and improving overall efficiency.

In addition to the layoffs, Block is also closing all 748 open roles at the company, with the exception of those that have progressed to an offer stage, critical operations roles, key leadership roles, and others. This move is likely to have a significant impact on the company's recruitment efforts and talent pipeline.

This is not the first time Block has undergone major layoffs. In January 2024, the company cut around 1,000 roles, which, combined with the current layoffs, represents a total reduction of around 10% of its workforce within a 15-month period. Block currently has around 12,000 staff members.

The layoffs are likely to have significant implications for the fintech industry as a whole, particularly in terms of talent acquisition and retention. As companies continue to navigate the challenges of the current economic climate, it remains to be seen how this move will impact Block's competitiveness and overall performance.

Block did not immediately respond to a request for comment on the layoffs. However, Dorsey's email provides a clear indication of the company's commitment to adapting to changing strategic needs and improving performance, even if it means making difficult decisions about its workforce.

As the fintech industry continues to evolve, it will be important to monitor how Block's layoffs impact its operations and competitiveness. With the company's commitment to "raising the bar and acting faster on performance," it remains to be seen how this move will shape its future trajectory and position in the market.