In a recent turn of events, music streaming service Tidal has confirmed its decision to lay off over 10% of its workforce, impacting approximately 40 employees across various departments, including the crucial curation team responsible for crafting playlists. The move aligns with the broader strategy outlined by Tidal’s parent company, Block, which aims to cap its employee count at 12,000 by the end of 2024.
Tidal spokesperson Sade Ayodele conveyed that these workforce adjustments are a result of Block’s recent commitment to streamlining operations and directing resources towards essential areas for sustainable business growth. Ayodele emphasized that these decisions were made after careful consideration, and the company acknowledges the contributions of the affected team members.
During Block’s recent earnings call, CFO Amrita Ahuja revealed that the company currently boasts just over 13,000 employees. The decision to cap the workforce at 12,000 signifies Block’s dedication to optimizing its operations and maintaining a leaner structure for future endeavors. The timeline for this workforce adjustment aims to achieve the targeted cap by the close of 2024.
Tidal is not alone in the recent wave of industry layoffs. Spotify, a key player in the music streaming realm, recently announced a reduction of about 1,500 jobs, constituting roughly 17% of its workforce. Daniel Ek, Spotify’s founder and CEO, attributed these layoffs to the challenges posed by slow economic growth and increasing capital costs.
The music streaming sector’s workforce adjustments contribute to a broader trend of job losses in the tech industry. Over the past year, the sector has witnessed a staggering increase of 50% in job losses, surpassing 240,000. Major players like Google, Amazon, Meta, and Microsoft, alongside numerous startups, have all made significant workforce cuts, reflecting the industry’s ongoing challenges.
As Tidal and other tech giants navigate the evolving landscape, these workforce adjustments underscore the industry’s resilience and adaptability in the face of economic uncertainties. The focus on strategic streamlining and business optimization positions these companies for future growth and sustainability in an ever-changing market.