In the United States, Block employees affected by the latest round of budget cuts will receive at least 60 days of pay, plus severance pay.
These workers are entitled to at least seven weeks of base pay, according to an internal FAQ document viewed by Business Insider, with an additional week of pay for each year an employee has worked at Block.
The fintech company distributed the document as part of Block’s second round of layoffs this year. On Wednesday, the company told some workers it was eliminating their roles, according to an email viewed by Business Insider. The exact scale of the cuts was not immediately clear.
A spokesperson for Block declined to comment.
Affected U.S. workers who sign a severance agreement will receive an additional 30 days of pay without working, for a total of 90 days, the FAQ states. In terms of health benefits, they will receive three months of premium COBRA coverage for themselves and their enrolled dependents.
These workers will also receive a one-time payment of $5,000, which the company said was intended for transition assistance.
Employees outside the United States would receive different severance packages depending on location, the document said.
The terms outlined in the 20-page FAQ document appear to be structured differently than those proposed in February, when the company cut more than 40% of its workforce. At the time, CEO Jack Dorsey said laid-off workers would receive 20 weeks of pay plus an additional week for each year they worked at the company.
Adding the 90 days of non-work pay and the minimum seven weeks of severance pay is roughly equivalent to the 20 weeks of block pay proposed in February, before the seniority pay top-up.
There are some differences in other benefits. The February package included six months of health coverage, while the company’s latest FAQ says it will offer three months of premium COBRA coverage to U.S. workers and their enrolled dependents.
Both rounds of reductions included a $5,000 payment, which Block called transition assistance.
Eligible workers will also receive a prorated payment in place of an April 2027 retention bonus, according to the document.
The company said benefits depended on workers signing and complying with the separation agreement.
Block isn’t the only tech company making cuts. Canva announced this week that it would lay off 22% of its workforce as part of a reorganization. The employees concerned must receive at least six months’ salary.
And at Squarespace, a website design company, which announced a 19% reduction in its workforce, workers will get at least 16 weeks of base pay plus overtime based on seniority as well as benefits through May next year.
Unlike previous cuts, which Dorsey said were due in part to advances in the amount of work AI could take on, the most recent cuts did not mention AI. Instead, in the email to staff, Block talked about “using better tools to handle routine tasks” and “refocusing our teams’ time on complex cases and decisions.”
The layoffs come after the company reported better-than-expected third-quarter profits amid growth in Square, its seller services business, and Cash App, its consumer financial services app.
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