Block’s Tidal Faces Another Round of Mass Layoffs: Insights and Implications

Overview

Jack Dorsey, the CEO of Block (formerly Square), has communicated to Tidal staff that another round of mass layoffs is on the horizon. The notification, viewed by Fortune, highlights a shift towards a startup-like operation within the music streaming company. This development follows a previous substantial cut of 10% of its staff in December 2023 and adds to the ongoing reorganizations.

Tidal’s Layoff Announcement

Dorsey’s note to Tidal staff, shared with Fortune, underscores the need for the company to "operate like a startup again," which mandates a "much smaller team." The layoffs will primarily focus on engineering and design roles, with Dorsey confirming that product management and product marketing functions will be entirely removed.

Expected Layoff Figures

While Dorsey did not provide the exact number of layoffs, insider speculation suggests that up to 100 employees could be affected, representing roughly a quarter of Tidal’s current workforce.

Previous Layoffs and Reorganizations

Tidal has faced financial challenges and struggled to compete with heavyweights like Spotify and Apple Music. In 2023, a federal judge dismissed a lawsuit against Block for its acquisition of Tidal, highlighting that the deal may have been a questionable business decision. The layoffs are part of Block’s broader efforts to streamline operations and refocus resources.

Prior Layouts in 2023

• December 2023: 10% staff cut due to market challenges and internal restructuring.
• June 2023: Large-scale reorganization aimed at redefining Block’s original focus.

Tidal’s Response

A spokesperson for Tidal responded to Fortune, stating that the company is reconfigured to better serve artists. The spokesperson emphasized that the reductions in roles are part of a broader strategy to operat more efficiently and deliver high-quality product development.

Business Priorities and Future Outlook

Dorsey’s memo signifies a commitment to operational efficiency and a return to the startup mentality that Tidal initially operated under. This new approach aims to trim fats and redirect resources towards core functions, enhancing overall performance and sustainability.

Call to Action

If you are a Block employee or have more insights to share, contact our journalist, Kali Hays, via Signal at +1-949-280-0267 or at [email protected].

Dorsey’s actions indicate a bold strategy toward growth and resilience under intense competitive pressure in the music streaming market.