Block Layoffs 2026: What’s Happening & Severance Rights in Canada

Block, Inc. (Block), the California-based payments company that’s led by former Twitter CEO Jack Dorsey, is cutting approximately 4,000 jobs in 2026 — nearly 50% of its workforce.

“Intelligence tools have changed what it means to build and run a company. We’re already seeing it internally. A significantly smaller team, using the tools we’re building, can do more and do it better. And intelligence tool capabilities are compounding faster every week,” Dorsey said in a letter to shareholders.

“And this isn’t just about efficiency. Block serves millions of customers…the urgency behind [the demand for our services] is more pronounced, and the speed at which we need to deliver is accelerating.”

Block announced the layoffs in conjunction with its fourth-quarter earnings results.

This page explains:

• What’s happening with Block layoffs
• Whether a Block layoff is permanent
• How much severance Block employees in Canada may be owed
• What to do before signing a severance offer

Block Layoffs: A Timeline of Recent Job Cuts

Block has restructured in recent years, with job cuts affecting teams linked to Canadian operations.

• March 2025: Block eliminated approximately 931 positions as part of a restructuring.
• Jan. 2024: Block slashed around 1,000 roles — adding to a sense of malaise in the fintech and broader tech sector.

Is a Layoff at Block Temporary or Permanent?

For non-unionized employees at Block, a layoff is almost always treated as a termination without cause, even if the following language is used:

• “Restructuring”
• “Reorganization”
• “Transformation”
• “Temporary layoff”

Unless your employment contract explicitly allows for Block to temporarily lay you off, the company can’t place you on indefinite layoff without terminating your employment — meaning they must provide full severance pay.

Severance Pay for Block Employees

In Canada, non-unionized employees, including those at Block, are often owed far more severance pay than what’s outlined in their initial offer.

Severance is based on common law entitlements, not just minimum standards. Factors include:

• Age
• Length of service
• Position and seniority
• Availability of comparable jobs

In many cases, Block employees in Canada can be owed up to 24 months of compensation.

Severance may include:

• Base salary
• Continued benefits
• Bonus and incentive compensation
• Stock, equity, or RRSP contributions (where applicable)
• Vacation pay
• Other earned compensation

First offers often:

• Cover only minimum entitlements
• Exclude bonuses or incentives
• Impose short signing deadlines
• Undervalue long-service or senior employees

Severance Offers: Common Problems

Canadian employees affected by layoffs frequently report issues such as:

• Severance offers far below legal entitlements
• Missing or unclear compensation breakdowns
• Benefits cut off too early
• Bonuses excluded without justification
• “Temporary layoff” language used improperly
• Pressure to sign within 24–48 hours

Wrongful Dismissal and Block Layoffs

A wrongful dismissal occurs when employers, including Block, fail to provide full severance required under common law.

You may have a claim if:

• Your severance offer is too low
• A termination clause isn’t enforceable
• You were pressured to accept your severance offer on the spot
• Bonuses or benefits were excluded from your severance package
• You were terminated while on medical, parental, or disability leave
• Block labelled your termination a “temporary layoff” without contractual authority

Large-scale layoffs at Block don’t reduce their legal obligations in Canada.

Laid Off at Block? Next Steps

If you’ve been laid off at Block:

1. Don’t sign your severance offer immediately
2. Gather your employment contract, bonus plans, and benefits information
3. Use the Severance Pay Calculator to double-check your entitlements
4. Keep records of your role, compensation, and length of service
5. Speak with an employment lawyer before agreeing to anything

Block Layoffs: Frequently Asked Questions

How much severance can employees at Block receive?

Up to 24 months — depending on age, service, and position.

Are layoffs at Block permanent?

For non-unionized employees, yes. A layoff is typically a termination.

Does Block have to include bonuses in severance?

Often yes — especially if bonuses were a regular part of compensation.

Can Block terminate employees on leave?

This can raise serious wrongful dismissal and human rights issues.

Can employment lawyers represent unionized staff at Block?

No. Unionized employees must go through their union.

Lost Your Job at Block? Get Help Now

If Block has laid you off, or offered a severance/buyout package, don’t do anything before seeking legal advice.

Samfiru Tumarkin LLP, one of Canada’s most reviewed employment law firms, has helped more than 50,000 Canadians secure the compensation they’re legally entitled to.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.