Block outlines severance terms for laid-off U.S. employees

Traders Union
All News
Business & Wealth
Companies
Block severance for US layoffs

Highlights

Block's latest U.S. layoffs offer at least seven weeks' base pay plus a week per year of service, 90 days' pay continuation, and $5,000 transition assistance.
The current severance terms cut healthcare coverage to three months' COBRA versus six months in February and require compliance with a separation agreement for full benefits.
Block proceeds with layoffs following strong third-quarter profits, while peers Canva and Squarespace announce workforce reductions of 22% and 19%, respectively.

Severance package and latest layoffs

As first reported by Business Insider, an internal FAQ distributed during Block's second round of layoffs this year says affected U.S. employees are eligible for at least seven weeks of base pay, plus an additional week for each year worked at the company.

The document says workers who sign a severance agreement will also receive another 30 days of pay without working, bringing total pay continuation to 90 days. It adds that employees and their enrolled dependents will receive three months of COBRA premium coverage, while affected staff will also get a one-time $5,000 transition assistance payment.

Block told some employees on Wednesday that their roles were being eliminated, according to an email seen by Business Insider. The scale of the reductions is not immediately clear, and a company spokesperson declined to comment.

Employees outside the U.S. are set to receive different severance packages depending on location. Eligible workers will also receive a prorated payment in place of an April 2027 retention bonus, with benefits contingent on signing and complying with the separation agreement.

How the terms compare across the sector

The latest terms appear to be structured differently from Block's February layoffs, when CEO Jack Dorsey said affected workers would receive 20 weeks of salary plus an additional week for each year at the company. The current package, combining 90 days of pay continuation and a minimum of seven weeks of severance, is roughly similar in value before the added tenure-based payment, though healthcare coverage is shorter.

In February, Block offered six months of healthcare coverage, compared with three months of COBRA premium coverage in the latest package. Both rounds include a $5,000 payment for transition assistance.

Block's newest cuts do not explicitly mention AI, unlike the prior reductions that Dorsey said were partly tied to advances in how much work AI could perform. In the latest email to staff, the company says it is using better tools to handle routine tasks and refocusing teams on more complex cases and decisions.

The cuts come as other technology companies also reduce headcount. Canva says this week it will cut 22% of its workforce as part of a reorganization, while Squarespace says it is reducing staff by 19%; those companies are offering severance packages that also include base pay and benefits. Block's layoffs follow better-than-expected third-quarter profits driven by growth at Square and Cash App.

Our earlier article on early-career job-hopping highlighted research showing that switching jobs is a major driver of wage growth and can help workers find better long-term matches. It also noted a gap between cultural skepticism about frequent moves and evidence that mobility can strengthen earnings and career stability—context that matters as layoffs and reorganizations push many workers into involuntary transitions.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.