Tidal, the music streaming service, has declared a 10% reduction in its workforce. This decision is a part of the cost-saving measures outlined earlier by Jack Dorsey, CEO of the parent company Block Inc. The layoff impacts around 40 employees, spanning various departments, notably including those involved in playlist curation. “These decisions are made with a heavy heart, and we deeply appreciate the efforts of those who are affected,” stated a Tidal representative in a communication that Bloomberg had access to.
Back in early November, Dorsey had mentioned that Block aimed to limit its employee count to 12,000 as part of a strategy to foster growth through specific constraints. This implied that the company would have to reduce its workforce by about 1,000 by the end of 2024, given that it had 13,000 employees as of the third quarter of 2023.
This downsizing coincides with a particularly challenging time of the year for the employees, mirroring significant staff cuts at Spotify. In a startling announcement right before the holidays on Monday, Spotify disclosed plans to lay off 1,500 staff members, which is 17% of its total workforce.
In the meantime, Tidal has also joined other music streaming services like Spotify, Apple Music, and Deezer in increasing its subscription rates. These platforms have adjusted their monthly fees for individual plans to $11, up from the previous $10. Amazon Music has also increased its individual plan price from $9 to $10. On the video streaming front, YouTube Premium has seen a price hike from $12 to $14 monthly, and other services such as Peacock, Paramount+, Hulu, and Max have also upped their subscription fees.
Frequently Asked Questions (FAQs) about streaming industry layoffs
Why is Tidal laying off 10% of its staff?
Tidal is reducing its workforce by 10% as part of a broader cost-cutting strategy initiated by Jack Dorsey, CEO of Block Inc., Tidal’s parent company. This move is aimed at capping Block’s payroll and fostering growth through strategic constraints, affecting about 40 employees across various departments, including the playlist curation team.
How many employees is Block Inc. planning to lay off by the end of 2024?
Block Inc. plans to reduce its workforce by approximately 1,000 employees by the end of 2024. This decision comes after setting a target to cap the employee count at 12,000, despite having 13,000 staff members at the end of the third quarter in 2023.