The Covid pandemic led to a surge in company hiring, which was good news for the labor force. However, following the pandemic’s end, coinciding with the global economic slowdown, many companies started to lay off their staff. As per a report by Layoffs.fyi, over 257,538 employees are laid off in 2023.
The music streaming app Tidal is the latest company to announce plans to let go of 10% of its staff. According to Engadget (via Bloomberg), the decision could affect 40 company employees across various departments. “We do not take these decisions lightly, and we are sincerely grateful for the contributions of our impacted teammates,” a Tidal spokesperson noted.
The Tidal parent company, Block Inc., detailed its plans to curb spending last month during a meeting to discuss its third-quarter earnings results. Back then, former Twitter (X) CEO Jack Dorsey said the firm would only keep 12,000 employees on its payroll. This is almost 1,000 employees less than what it had at the end of the third quarter.
The plan takes effect by the end of 2024. So, more layoffs are on the way for Block Inc. staff. Block Inc. currently oversees business payment processing services Square, Cash App, and Tidal.
Jack Dorsey reflects on Tidal layoffs
Dorsey sent a note to Tidal staff on Wednesday (via Business Insider) to reflect on the recent layoffs and highlight the company’s horizon for the coming year. He noted putting “constraints” on the company’s growth and laying off a part of staff were among the “hardest actions” to be made. Dorsey continued that he wanted to be more communicative to bring everyone into a “shared understanding” of why this decision was made.
The business executive formerly said Block Inc. needs to take a more sustainable path for its future. In most CEO’s dictionaries, more sustainability means more employees should expect to lose their jobs.
Meanwhile, Tidal isn’t the only music streaming app that’s laying off staff. In early December, Spotify announced it would cut 1,500 jobs across the company. This is Spotify’s third round of layoffs in 2023.