Block’s latest US layoffs include up to 90 days of pay

The 20-page document says affected US workers will also receive three months of COBRA premium coverage for themselves and enrolled dependents, along with a one-time $5,000 payment for transition assistance. Eligible employees are also due a prorated payment in place of an April 2027 retention bonus. The benefits depend on workers signing and complying with the separation agreement. Packages for employees outside the US will vary by location.

Block told some employees on Wednesday that their roles were being eliminated, according to an email seen by Business Insider. The scale of the cuts was not immediately clear, and a company spokesperson declined to comment. This is Block’s second round of layoffs this year.

The new terms differ in some respects from the package offered in February, when the company cut more than 40% of its workforce. CEO Jack Dorsey said then that laid-off employees would receive 20 weeks of salary, plus one week for every year at the company, and six months of healthcare coverage. The latest package’s minimum seven weeks of severance and 90 days of pay add up to roughly 20 weeks, before the additional tenure-based pay. Both packages included $5,000 in transition assistance, while the latest FAQ provides three months of COBRA coverage.

The latest staff email referred to “using better tools to handle routine tasks” and “refocusing our teams’ time on complex cases and decisions”; it did not mention AI. Dorsey had cited advances in the amount of work AI could take on as one reason for the February cuts. The latest reductions follow better-than-expected third-quarter profits, with growth at Square, Block’s seller-services business, and Cash App, its consumer financial services app.