Tidal Hit with Another Wave of Layoffs, Jack Dorsey Says ‘We Need to Build Like a Startup Again’
Photo Credit: Jack Dorsey by Mark Warner / CC by 2.0
Jack Dorsey tells Tidal staff they’re in for another wave of layoffs as the company builds ‘like a startup again.’
Tidal employees are about to be hit with another round of layoffs, owner Jack Dorsey told staff in a note on Wednesday morning. Dorsey explained to the team the company needs to operate “like a startup again,” which will require reorganization across the company to become “a much smaller team.”
“We’re going to part ways with a number of folks on our team,” said Dorsey in the note to Tidal staff. “We’re going to lead with engineering and design, and remove the product management and product marketing functions entirely. [Tidal is] reducing the size of our design team and foundational roles supporting Tidal, and we will consider reducing engineering over the next few weeks as we have more clarify around leadership going forward.”
Though Dorsey didn’t provide a specific number as to the amount of jobs to be affected by the cuts, speculation from company insiders estimate as many as 100 people could lose their jobs. This would amount to around a quarter of Tidal’s total staff.
“We have made some internal changes to our Tidal team to focus on serving artists in the most meaningful way,” said a Tidal spokesperson in a statement to Fortune. “This involved the elimination of some roles across our business and design teams. We are going to be smaller, focus on fewer things, and move with a relentless approach to product development.
The move is the second round of layoffs at the music streaming company in less than a year, with Tidal having cut 10% of its staff back in December. Meanwhile, Dorsey told staff at his other company Block to prepare for a similar reorganization, to go back to “how we started as a company.”
Dorsey (and Block) acquired a majority stake in Tidal in 2021 for around $300 million. Despite its roots with Jay-Z behind the wheel, Tidal has always struggled to find a solid foothold in the streaming game alongside heavyweights like Spotify and Apple Music. Those two platforms, alongside YouTube Music and Amazon Music, account for over 97% of all subscribers to music streaming providers in the United States according to DMN Pro data.
