For the second time in lower than a yr, staff at music streaming service Tidal will expertise mass layoffs.
Jack Dorsey, the CEO of fee processing firm Block, which acquired a majority stake in Tidal for $237 million in 2021, wrote in a leaked memo to workers that the corporate was “going to half methods with a variety of people” to work “like a startup once more.”
The be aware revealed that the engineering and design groups will see layoffs and product administration and product advertising roles shall be eliminated completely.
“We’ll lead with engineering and design and take away the product administration and product advertising features completely,” Dorsey wrote within the be aware obtained by Fortune on Wednesday. “We’re decreasing the scale of our design staff and foundational roles supporting TIDAL, and we are going to think about decreasing engineering over the subsequent few weeks as we now have extra readability round management going ahead.”
Jack Dorsey. Picture by MARCO BELLO/AFP through Getty Photos
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Insiders informed Fortune that about 100 staff, or a couple of quarter of Tidal workers, could possibly be let go. Within the be aware, Dorsey didn’t say how many individuals the layoffs would influence.
Tidal launched in 2015 after artist Jay-Z purchased the tech firm behind it for $56 million. Since Dorsey’s takeover in 2021, Tidal has gone by a number of layoff rounds. In December 2023, Tidal minimize 10% of workers, or about 40 individuals.
Tidal has 0.5% of the music streaming U.S. market, with simply over 700,000 subscribers. Spotify, Apple Music, and Amazon Music have over 90% of the market mixed. Spotify leads the pack with 36% of the market alone.
Dorsey famously based Twitter in 2006. He’s presently price $4.5 billion, per Forbes.
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