Jack Dorsey Directly Addresses Layoff Controversy
In response to public concerns over recent layoffs at Block, former Twitter founder Jack Dorsey took to X to clarify the situation. He admitted that the company had indeed overhired during the pandemic due to the creation of two separate structures — Square and Cash App.
Misjudged Organizational Needs
'Yes, we overhired during the pandemic because we built two parallel structures,' Dorsey stated. 'This issue was corrected by mid-2024.'
Efficiency Target Quadrupled Compared to Pre-Pandemic Levels
Despite streamlining operations, Dorsey acknowledged that it hasn't fully addressed the complexities involved in their ventures into lending, banking, and BNPL services. The company now aims for each employee to generate over $2 million in gross profit — four times the pre-pandemic efficiency.
- Employee efficiency remained around $500,000 from 2019 to mid-2024
- Current gross profit target exceeds $2 million per employee
- Organizational adjustments have been largely completed
'We're now operating a more efficient company than most,' Dorsey concluded.