Block to cut 112 jobs in March as economic uncertainty bites

(Reuters) – Jack Dorsey-led Block Inc plans to cut 112 jobs on March 30, the fintech said in a legally mandated notice, as part of its previously disclosed plans to trim headcount and reduce costs, sending shares up over 3% in early trade on Thursday.

The notice was issued under the Worker Adjustment and Retraining Notification (WARN) Act which requires employers to provide a 60-day notice before layoffs, according to the Department of Labor & Workforce Development website.

There have been job cuts across the tech industry as high-interest rates and a shaky economy have taken their toll.

Members of the so-called “Magnificent Seven,” Amazon (NASDAQ:), Alphabet (NASDAQ:) and Microsoft (NASDAQ:) have all announced layoffs in the first two months of the year so far.

The company, which also owns Spotify (NYSE:) rival TIDAL, began to cut jobs in January, a person familiar with the matter told Reuters at the time.

At the end of the third quarter, it employed just over 13,000 people and has committed to reducing it to 12,000 by the end of 2024.

Short-seller Hindenburg took a short position on the company last year, alleging the payment company overstated its user numbers and understated its customer acquisition costs.

The California-based payments firm said in November that it expects to cut jobs and embark on a broader cost-savings program by the end of 2024.

It reports fourth-quarter results after markets close on Thursday.