Tidal Slashes Quarter of Workforce in Major Layoffs as Jack Dorsey Pushes Startup Mindset
Jack Dorsey announced another wave of layoffs at Tidal, emphasizing the need to operate "like a startup again." The restructuring will significantly reduce the company's workforce and reorganize its operational structure.
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Key Changes:
- Complete removal of product management and marketing functions
- Reduction in design team size
- Potential cuts to engineering staff
- Estimated 100 jobs affected (approximately 25% of total staff)
This marks Tidal's second major layoff in less than a year, following a 10% staff reduction in December. A Tidal spokesperson confirmed these changes are part of a strategy to "focus on serving artists in the most meaningful way" with a smaller, more focused team.
Market Context:
- Block (Dorsey's company) acquired Tidal in 2021 for $300 million
- Tidal faces strong competition from major platforms
- Spotify, Apple Music, YouTube Music, and Amazon Music control 97% of US streaming subscriptions
The restructuring reflects Tidal's ongoing challenges in competing with larger streaming services, despite its prestigious origins under Jay-Z's leadership.
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