In a significant move, Jack Dorsey’s financial services company, Block, announced the layoff of nearly half its workforce, amounting to approximately 4,000 jobs. Despite the scale of these reductions, the company has received commendation for its severance package, which Dorsey characterized as generous relative to industry standards.
As part of the severance agreement, affected employees will receive 20 weeks of salary, in addition to one extra week for each year of service. In a bid to support their transition, Block will also provide six months of healthcare, a $5,000 stipend, and the option for employees to retain their work devices. Equity in Block will continue to vest until the end of May, ensuring employees have further support during their job search. Brooks Holtom, a management professor at Georgetown University, noted that such packages are considered “relatively generous,” emphasizing Dorsey’s accountability in implementing these layoffs.
A comparative analysis reveals the varying severance packages provided by other tech giants. Amazon, which recently announced a cut of 16,000 corporate jobs, offered affected employees a 90-day pay and benefits period, along with an additional severance package. Employees were required to return their company laptops using shipping boxes provided.
Meta, in its 2025 layoffs, included a severance package consisting of 16 weeks of pay plus two extra weeks for each year of service, accompanied by six months of health insurance. However, upon notification of layoffs, employees had limited time to access company systems before losing that access.
Airbnb, which laid off around 1,900 employees in 2020, provided a severance package of 14 weeks of pay plus an additional week for each year of service. The company also covered a year of health insurance through COBRA and offered four months of mental health support.
In 2023, Google laid off 12,000 employees, granting a severance package that consisted of 16 weeks of base pay along with two additional weeks for every year of employment and six months of healthcare coverage.
At Microsoft, those affected by layoffs in the same year were promised “above-market” severance pay, though no specific amounts were disclosed. The package included six months of healthcare and stock vesting, along with a 60-day notice period.
Conversely, Twitter, rebranded now as X, faced criticism for its handling of layoffs, offering little clarity regarding benefits. Reports indicated that laid-off employees received about three months’ salary but faced immediate loss of access to their laptops and other company resources before official termination notices.
The contrast in severance packages across major tech firms reflects a broader trend in the industry, with some companies prioritizing employee welfare during transitions, while others have come under scrutiny for their abrupt handling of layoffs. Dorsey’s leadership and the response from Block’s laid-off employees may set a new benchmark for how tech companies approach severance in challenging times.
