Streaming service Tidal reportedly lay off 10% of staff

Tidal, the high-fi streaming service majority owned by Jack Dorsey's digital payments company Block, has laid off more than 10% its staff, or about 40 staffers.

Last month it was reported that Tidal’s umbrella company, which also owns Square and CashApp, was planning sweeping layoffs.

“As part of Block and its recent announcement to cap the number of employees at the company to focus on business growth, TIDAL has carefully considered how to right-size our team to ensure we are able to continue to build and invest in critical areas of the business,” said a statement from a Tidal spokesperson.

“We do not take these decisions lightly, and we are sincerely grateful for the contributions of our impacted teammates.”

Founded in 2014, Tidal was bought by a consortium of artists including Jay-Z and Beyoncé, before being acquired by Jack Dorsey's Square in 2021.

The news arrives just days after Spotify CEO Daniel EK revealed plans to lay off 1,500 employees, or one sixth of its staff.

“Economic growth has slowed dramatically and capital has become more expensive,” Ek’s statement read. “Despite our efforts to reduce costs this past year, our cost structure for where we need to be is still too big.”

In October of 2023 Spotify posted a rare quarterly operating profit of €32 million, compared to a loss of €228 million for the same period a year earlier, on the back of 26% growth in active users for the third quarter.

Ek wrote in a letter to employees: “I realise that for many, a reduction of this size will feel surprisingly large given the recent positive earnings report and our performance.”