Jack Dorsey is restructuring Block

ChainCatcher news, according to Fortune magazine, Block CEO and co-founder Jack Dorsey is restructuring Block, the company behind the popular payment services Cash App and Square, as well as the music streaming service Tidal.

In a notice to employees this week, Jack Dorsey stated that the internal reporting structure of the company will undergo a complete overhaul, breaking down the barriers between various business lines and instead reorganizing employees based on roles such as engineering, design, and sales.

Dorsey stated in the notice: "We will reorganize the entire company by function, dissolving our business unit reporting structure." He added that this move will bring Block back to "the state we were in when we first started as a company." The subject line of the notice was "fn block."

This planned restructuring is the latest initiative in a series of transformation efforts by Block over the past year, including laying off about 10% of its workforce, ending performance evaluations, and appointing a new chief technology officer. The announcement of the plan coincides with Block's reporting of its latest quarterly earnings on August 1. Block (formerly Square) shares are currently trading about 30% lower than their 52-week high of $87.52.

Dorsey stated that this restructuring aims to address what he identifies as "three issues" within Block: "collaboration, craftsmanship, and flexibility."