Fintech company Block is offering employees affected by its latest workforce reduction in the United States at least 60 days of pay, additional severance based on tenure and a one-time $5,000 transition payment. Employees who sign a separation agreement will receive an additional 30 days of pay without working, taking the total payment period to 90 days.
According to an internal frequently asked questions document reviewed by Business Insider, the package also includes three months of healthcare premium coverage for employees and their enrolled dependants. Eligible employees due to receive a retention bonus in April 2027 will instead receive a prorated payment.
Severance And Transition Support
Under the terms outlined in the document, affected US employees will receive at least seven weeks of base pay, with an additional week for every year of service at Block. Signing the separation agreement and complying with its terms are conditions for receiving the benefits.
The one-time USD 5,000 payment is intended to support employees during their transition. Workers outside the US will receive severance packages based on their respective locations.
Different From February Cuts
The latest package differs from the terms offered during Block’s February 2026 layoffs, when the company reduced its workforce by more than 40 per cent. Employees affected by that round were offered 20 weeks of salary, plus an additional week for every year of service, along with six months of healthcare coverage.
The USD 5,000 transition payment was included in both rounds of workforce reductions.
Workforce Impact Unclear
Block has not disclosed the exact number of employees affected by the latest cuts. The company informed some employees on Wednesday that their roles were being eliminated.
The restructuring follows Block’s report of better-than-expected third-quarter profits, supported by growth in its Square seller-services business and Cash App consumer financial services platform.
Efficiency And Changing Work
Unlike the February workforce reduction, which Chief Executive Officer Jack Dorsey had partly linked to advances in artificial intelligence, the latest communication to employees referred to better tools for routine tasks and a shift towards more complex cases and decision-making. The communication did not explicitly identify artificial intelligence as the reason for the latest cuts.
The revised severance terms outline the financial and healthcare support available to affected employees as Block adjusts its workforce and operating model.