Block is reportedly laying off more than 1,000 employees around the world, including many of the Afterpay staff in Australia.
👉 Background: Afterpay is the buy now pay later company that launched in 2014 and grew to over 16 million users globally during the pandemic. And in the same year, it was acquired by American Fintech company, Block (formerly known as Square) for a massive $39 billion.
👉 What happened: Now, Block is reportedly laying off more than 1,000 employees around the world, including many of the Afterpay staff in Australia. That's nearly 10% of their entire workforce.
👉 What else: Block has axed these employees all in one foul swoop. And, there are rumours that the whole Afterpay brand could even be absorbed into Block's broader ecosystem (at least globally).
💡Layoffs, or job cuts, are a balancing act between cutting costs and protecting the company's reputation.
💡When a major company announces layoffs, it usually leads to bad press and lower employee morale. And is why Block chose to rip off the bandaid in one swift move, which avoids repeated hits to the brand's reputation and employees.
💡This approach stands in contrast to companies like Meta and Amazon who have laid off employees in multiple rounds over a period of months.
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