Block Inc. Lays Off Dozens of Marketing Employees in Australia After Global Job Cuts

Block, a global payments business, has laid off dozens of people in the marketing and communications departments in Australia. The step is taken as part of a larger reorganisation that will result in the elimination of about 4,000 jobs globally.

Industry estimates place the number of local full-time positions cut by Block at over 60% as a result of the global restructure and subsequent layoffs, considerably reducing the company's presence in Australia. Nearly twenty-five people from the Australian corporate teams of Afterpay, Square, and Block have acknowledged on LinkedIn in the last week that they were let go.

Positions Affected by Block’s Layoffs

Cuts have affected a number of senior executives in the communications and marketing departments. Joel Moran, VP of marketing, Andrew Gilbert, and other top executives like Lucas Howe, head of communications for the Asia-Pacific region, are among those departing. Further cutbacks include Claire Simon, creative director, and Katie Gadsby, director of client partnerships. A substantial regional budget was allegedly overseen by the marketing group. According to industry estimates, the team was responsible for overseeing a yearly marketing budget of approximately US$100 million. About $20 million went into more conventional forms of advertising in the ANZ region, while the rest went toward partnership-driven initiatives.

The layoffs in Australia are the latest in a series of major changes announced by Block CEO Jack Dorsey early this year. About 4,000 workers, or 40% of the company's worldwide staff, will be let go, according to the official announcement. This resulted in a reduction of over 10,000 employees at Block, Square, Cash App, Afterpay, and Tidal to less than 6,000. Dorsey claimed that the company could function with smaller teams thanks to developments in automation and AI tools.

Following the announcement, Dorsey took to social media to write that the company is already experiencing a shift in how it builds and runs businesses due to its intelligence tools, fewer teams, and new ways of working. As automation and AI start to alter organisational structures, technology companies throughout the world are reorganising their operations, according to Reuters.

Layoffs Putting Question Mark of Block’s Strategy

With these layoffs, Block's future in Australia, a country where Afterpay had a prominent presence in marketing, becomes murky. According to experts in the field, marketing, communications, and support roles are often hit the hardest by layoffs when multinational technology corporations automate and optimise their operations. While Block keeps growing its digital payment and financial technology platforms globally, the reorganisation shows a move towards smaller teams and more automation.