Block, the fintech company co-founded by Jack Dorsey, has announced the layoff of approximately 4,000 employees, marking one of the largest workforce reductions in the tech sector this year. The sudden cuts have left many employees in shock, with one former data analyst receiving a layoff email while conducting an interview for a new candidate, revealing the personal impact of the decision.

The Layoff During an Interview

Ivan Ureña-Valdes, a former data analyst at Block, was in the middle of interviewing a candidate for a role at the company when he received an email from his CEO, Jack Dorsey, informing him of his layoff. The situation was particularly ironic, as he had just been hired for a new position and was in the process of evaluating potential hires.

“I felt really bad because I was in the middle of interviewing someone. I had to tell them, ‘I was actually just let go from the company. I probably won’t be able to submit your feedback in time. Please reach out to your recruiter,'” Ureña-Valdes told Business Insider.

The former employee described the experience as deeply personal. “I’m the sole provider for my family. It was tough,” he said, reflecting on the emotional weight of the situation. Ureña-Valdes had previously survived three rounds of layoffs at Block, but this time was different. He noted that he had been working on two major projects and was not being let go due to performance issues.

Severance and Benefits for Laid-Off Workers

Block has provided a generous severance package to those affected, including 20 weeks of base pay, an additional week of salary for each year of tenure, equity vesting through the end of May, six months of continued healthcare coverage, and a $5,000 transition payment to help with immediate needs. Employees are also permitted to keep their corporate devices.

Ureña-Valdes acknowledged the support from Block, saying, “I’m honestly grateful for the generous severance and benefits. It definitely helps make the rough situation a bit easier.” However, he warned that such disruptions may become more common across the industry.

“I 100% think that more disruption and more of these types of cuts will probably come at other companies, which is unfortunate,” he added, reflecting on the broader implications of the layoff.

Reasons Behind the Layoff

Dorsey explained the decision in a message to employees, emphasizing that the company is not in financial trouble. He stated that the business is strong, with continued growth in gross profit, an expanding customer base, and improving profitability. However, he noted that the company is undergoing a structural shift driven by AI tools and smaller, flatter teams.

“We’re already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company. And that’s accelerating rapidly,” Dorsey wrote.

The announcement has raised concerns about the stability of jobs in the tech sector, particularly in companies using AI and automation. Ureña-Valdes’ experience highlights the personal toll of such decisions, especially for those who are the sole providers for their families.

Block’s decision to lay off 4,000 employees has sparked discussions about the future of work in the tech industry. As AI and automation become more integrated into business operations, companies may continue to restructure their workforce, potentially leading to more job cuts in the coming months.

With the current economic climate and the ongoing evolution of AI, it remains to be seen how other companies will respond to similar challenges. For now, the focus is on supporting those affected by the layoffs and ensuring that the transition is as smooth as possible.