Block Details Severance for Its Second Layoff Round of 2026
Block has laid off more employees, and the terms offered to those leaving are now known. An internal FAQ shows how the package compares with the one offered in February.
What US employees receive
Affected US workers get at least 60 days of pay, plus severance, according to the 20-page FAQ that Business Insider viewed. Severance starts at seven weeks of base pay, with an extra week for every year worked at Block. Signing the severance agreement adds 30 more days of pay with no work required, which brings the total to 90 days.
Other terms: three months of COBRA premium coverage for the employee and enrolled dependents, a one-time $5,000 payment for transition assistance and a prorated payment in place of an April 2027 retention bonus. Everything depends on signing and adhering to the separation agreement. Employees outside the US get different packages by location.
COBRA is the US rule that lets departing employees stay on their former employer's health plan.
How it differs from February
This is Block's second round of layoffs this year. Some workers were told on Wednesday that their roles were eliminated. The scale was not immediately clear, and a Block spokesperson declined to comment.
In February the company cut more than 40% of its workforce. CEO Jack Dorsey said then that workers would get 20 weeks of salary plus a week per year at the company. Seven weeks of severance and 90 days of pay come out roughly equal to those 20 weeks, before the tenure payment. Healthcare was longer in February at six months, against three months now. The $5,000 payment appears in both rounds.
No mention of AI this time
Dorsey tied the earlier cuts in part to how much work AI could take on. The newest cuts did not mention AI. A staff email instead referred to "using better tools to handle routine tasks" and refocusing teams on complex cases and decisions. The layoffs follow third-quarter profits that beat expectations, helped by growth at Square, its seller-services business, and Cash App, its consumer app.
Block is not alone. Canva said this week it would cut 22% of its workforce, with at least six months' pay for those affected. Squarespace is cutting 19% of staff and promises workers a minimum of 16 weeks of base pay, extra time tied to tenure and benefits running to May next year.
Source: Business Insider