In a bold move to revive Tidal’s relevance in the music streaming industry, Jack Dorsey has initiated another round of major layoffs, urging the platform to “get back to basics” and operate more like a startup.
Despite aspirations to stand out in the crowded streaming market, Tidal has struggled to secure a foothold against dominant players, raising concerns about its future viability.
Will Tidal be able to get the momentum it needs to stay alive? If Dorsey’s plan works, it may have a shot. Here’s how.
Tidal Eliminating Certain Roles
News of more cuts is not a huge surprise, as the Dorsey warned staffers back in July that reorganization was coming, though specifics were not forthcoming at the time.
The decisive tech executive, who resigned from Twitter in 2021, outlined a vision that involved reducing non-core functions, particularly within product management and product marketing.
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In the correspondence, Dorsey reportedly said that Tidal needed to act “like a startup again” with a smaller team in order to stay in the game.
“So we’re going to part ways with a number of folks on our team. We’re going to lead with engineering and design and remove the product management and product marketing functions entirely. We’re 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 clarity around leadership going forward.” – Jack Dorsey, CEO of Block
One Fourth of Employees Get the Ax
Though no firm numbers have been specified, estimates put the number of layoffs at around a hundred, roughly 25% of Tidal’s 400-person team. This comes on the heels of another workforce reduction in December 2023, where 10% of the staff was let go, and is leaving some worried for the future of the platform.
“We have made some internal changes to our Tidal team to focus on serving artists in the most meaningful way. 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.” – Tidal in a statement
Currently, Tidal has only about 0.5% of the US streaming market share and is dwarfed by Spotify, Apple Music, and Amazon, which hold 32%, 30%, and 24%, respectively. Tidal’s modest 700,000 subscribers starkly contrast with the millions claimed by its larger competitors.
A Complicated History
Launched in 2014 by Norwegian-Swedish company Aspiro, Tidal sought to differentiate itself by offering artist ownership. In 2015, it was relaunched after acquisition by Jay-Z’s Project Panther Bidco, then gained Sprint Corporation as a 33% stakeholder in 2017. When Block, then known as Square, acquired majority ownership in 2021, Jay-Z joined Tidal’s board.
Tidal supporters cite its high-quality audio and artist-friendly royalty model, though others argue its premium price, lack of podcasts, and less refined playlists have hindered its growth. Consequently, Tidal has attracted dedicated audiophiles but struggles to appeal broadly to casual listeners.
This leaner approach may be Tidal’s best chance to stay relevant, and Dorsey’s restructuring could make or break the platform’s future in a fiercely competitive market.
