What Dorsey Got Right (and Wrong) in His Layoff Email

Layoff emails are a litmus test for leadership. They reveal whether a company values its people—or just its bottom line.

Last week, Jack Dorsey sent an all-employee email announcing massive job cuts at Block, originally Square. The result? A mix of clear intent and missed opportunities. Let’s break it down.

What Worked

✔ Direct with limited jargon: Dorsey wasted no time getting to the point. He included no corporate fluff, just the why and how. Employees appreciate clarity, especially in moments of uncertainty. When people’s jobs are on the line, vague, overly polished language only fuels frustration.

✔ Acknowledges leadership’s role: He took responsibility for hiring missteps and strategic misalignment. That’s a rare move in layoff comms, and it helps maintain some credibility. Employees don’t want to hear “this was out of our control.” They want leadership to own their decisions.

✔ Answers the most important questions: The email covered what people need to know—what’s happening, why it’s happening, and what to expect next. Employees shouldn’t have to guess what's going on—uncertainty only adds to the stress.. In that regard, this email delivered.

What Fell Flat

✖ Lack of empathy: The email read like a strategic update, not a message to people losing their livelihoods. There was no acknowledgment of the emotional weight of this moment. A simple line—"I know this is incredibly difficult"—would have made a difference. Employees aren’t just assets being offloaded; they’re people. And people remember how they were treated.

✖ Implication of individual underperformance: One of the stated reasons for the layoffs was performance. Even if true, tying mass cuts to underperformance sends the message that these employees deserved to be let go. That kind of framing stings and can seriously damage the morale of those who remain. It’s one thing to address company-wide strategic missteps; it’s another to subtly shift blame to the people being impacted.

✖ No reassurance for those staying: Layoff emails aren’t just for the people leaving—they’re also for the people staying. If all they hear is “we hired too aggressively, and now we’re cutting roles,” what’s stopping them from assuming it’ll happen again? Employees need a future-looking reason to stay engaged, not just a reason why their coworkers are gone.

The bottom line

Layoff comms need to be clear and compassionate. Employees don’t expect (or want) sugarcoating, but they do expect basic respect.

A message that only focuses on business logic might protect investor confidence, but it risks alienating the very people leaders need to take the company to the next level.

And the work isn’t over once the email is sent. Next week, we’ll cover what leaders should do after layoffs to maintain trust and engagement. Stay tuned!

SUBSCRIBE