Block’s US Layoffs: Severance Includes 90 Days’ Pay
Employees in the United States affected by the company’s latest job cuts can receive at least seven weeks of base pay, plus an additional week for each year…
Block is offering laid-off US employees at least seven weeks of base pay, with another 30 days of pay without working for those who sign a separation agreement. The package also includes three months of COBRA health coverage and a one-time $5,000 transition payment.
The terms apply to employees affected by Block’s second round of job cuts this year. The company told some workers on Wednesday that their roles were being eliminated, while the scale of the cuts was not immediately clear.
What does Block’s severance package include?
Eligible US employees receive an additional week of base pay for every year they worked at Block, according to an internal FAQ document. Signing and complying with a separation agreement is required to receive the benefits.
The additional 30 days of pay brings the package to a total of 90 days of pay without working, on top of at least seven weeks of severance. Workers also receive three months of COBRA premium coverage for themselves and enrolled dependents, alongside the $5,000 payment intended to help with the transition.
Employees outside the United States will receive different packages depending on their location. The FAQ also says eligible workers will get a prorated payment in place of an April 2027 retention bonus.
How does the package compare with February’s?
Block’s latest terms differ from the package offered in February, when the company cut more than 40% of its workforce. At that time, Chief Executive Jack Dorsey said affected employees would receive 20 weeks of salary, plus an additional week for every year at the company.
The minimum severance and 90 days of pay without working in the latest package are roughly equivalent to the 20 weeks of salary offered in February, before the additional tenure-based pay. Health coverage is shorter: the February package included six months, while the latest FAQ provides three months of COBRA premium coverage.
Both rounds included a $5,000 transition payment. The newer package also makes benefits conditional on workers signing and following the separation agreement, a requirement that shapes what employees must accept to receive the support.
For affected workers, the practical difference is not only how much pay is provided but how long health coverage lasts and which terms govern access to the benefits. The figures in the FAQ describe the US package; employees elsewhere face terms based on their location.
What reason did Block give for the cuts?
In its email to staff, Block referred to “using better tools to handle routine tasks” and “refocusing our teams' time on complex cases and decisions.” The latest communication did not mention artificial intelligence.
That contrasts with the February reductions, which Dorsey said were partly driven by advances in how much work AI could take on. Block’s latest job cuts came after the company posted better-than-expected third-quarter profits, with growth at Square, its seller-services business, and Cash App, its consumer financial services app.
A Block spokesperson declined to comment. The company’s FAQ says the severance benefits depend on workers signing and adhering to the separation agreement.
