Why now, and why so many people?
Those were the two questions whipping around the business world following Block’s shocking announcement that it was slashing 4,000 jobs, or nearly half its workforce. The parent company of Square and Cash App reported Q4 gross profits of $2.9 billion, up 24% year over year. Its shares jumped almost 20% in the trading sessions on Feb. 26 following the earnings release and the announcement of a major workforce reduction.
But if the company is profitable and growing, why cut jobs now? “We believe that it is actually from a position of strength that we have the ability to take an action like this with confidence and execute on it in a way that continues to deliver for our customers and stakeholders,” Amrita Ahuja, CFO and COO at Block, told Fortune.
