Internal memo: Block CEO Jack Dorsey says Tidal is in for another mass layoff; insiders say as many as 100 people could be laid off, or ~25% of Tidal's staff
Block CEO and founder Jack Dorsey wants streaming music app Tidal to operate like a startup again - and that means layoffs
Context & Ripple Effects
The proposed Tidal cuts follow [[a:871685|Dorsey’s July 2024 plan to reorganize Block around functions rather than business-unit silos]], a move that signaled a broader push to simplify how the company operates. Tidal is now being asked to adopt the same leaner operating posture.
The report also fits a continuing cost-reset arc at Block: the company later disclosed a larger workforce reduction and management-layer changes, suggesting that Tidal’s restructuring was not an isolated personnel decision.
First-order effects
- As many as 100 Tidal employees—about a quarter of the service’s staff—could lose their jobs, while remaining teams are expected to operate with a smaller startup-style footprint.
- Dorsey and Block would gain tighter control over Tidal’s cost base and organization, but the unit would have less staffing capacity immediately after the cuts.
Second-order effects
- A leaner Tidal organization may force the service to prioritize a narrower set of product, editorial, and operational work, rather than maintaining the same breadth with fewer people.
- The move reinforces the functional-reorganization model across Block, making shared teams and centralized decisions more likely for smaller businesses in its portfolio.
Third-order effects
- If repeated across Block, this points to a portfolio strategy in which standalone units are judged less on organizational independence and more on whether they can operate within a centralized, lower-cost structure.
- For streaming services, persistent pressure to run lean could favor platforms with scale or parent-company resources, while limiting the room for differentiated but labor-intensive operations.
The trend: Tidal’s planned reduction is one data point in Block’s broader shift from separately staffed business units toward centralized, leaner operating models.