Jack Dorsey, owner of the Tidal streaming music service, today announces a sweeping adjustment of Tidal’s corporate structure, staff size, and competitive positioning. Tidal is a subsidiary of Dorsey-owned Block, a conglomerate that includes the Square point-of-sale payment system, digital wallet Cash App, and other payment-related brands. The acquisition of Tidal happened in March 2021 (RAIN HERE). It was rumored in December 2020 (RAIN HERE).
The changes to Tidal are not revealed in detail today, but the main points laid out by Dorsey point to something resembling a reboot of Tidal’s business. His remarks, as captured by Fortune, include his intent for Tidal to operate “like a startup again.”
Layoffs
Headcount numbers are not available, but this — “We’re going to part ways with a number offolks on our team” — does not seem to match the extraordinary sweep of Dorsey’s planned staff reduction as stated below:
“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, Tidal
That sounds like a pretty comprehensive reconception of company operations, and Dorsey seems to confirm that idea: “We need to build like a startup again.
An unnamed Tidal spokesperson sanitized the layoff sweep:
“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 spokesperson
Tidal laid off about 10% of its staff nearly a year ago, in December 2023. Dorsey acquired his majority stake in Tidal for a reported $300-million in 2021.
