TIDAL’s Massive Layoffs Hint at a Last-Ditch Effort to Survive the Streaming War

Is TIDAL’s slashing spree a smart reset or the beginning of the end?

TIDAL’s latest cuts will lay off up to 100 employees—about a quarter of its workforce—as Jack Dorsey warns that TIDAL must “build like a startup again” to survive. This second round of layoffs in less than a year. It underscores TIDAL’s uphill battle to stay afloat in an industry ruled by faster-growing, wealthier giants.

The Fall of TIDAL

TIDAL’s position in the streaming market reveals a serious struggle to survive, with just 721,400 subscribers and a mere 0.5% market share.

TIDAL’s problem isn’t just its small user base—it’s also lagging behind in growth and user engagement.

Spotify, Apple, and Amazon have used their vast resources to keep listeners engaged with frequent updates and content.

In comparison, TIDAL has struggled to keep up.

Once marketed as an artist-owned service with higher audio quality, TIDAL’s positioning has not attracted a large audience. With recent staff cuts and the removal of key departments, TIDAL now has even fewer tools to secure its place in the market.

Where TIDAL Went Wrong

TIDAL launched with high-quality audio, artist ownership, and a more artist-friendly payment model as its main features. With this, it hoped to be a premium alternative to mainstream streaming services.

But this focus didn’t connect with most music listeners, who care more about convenience, variety, and affordable plans.

TIDAL’s premium strategy quickly lost its edge as major tech companies matched its audio quality at no extra cost. This, alongside other features like vast music libraries and seamless cross-device access, created a complete experience that most users weren’t willing to leave behind for TIDAL.

Attempts to attract users with exclusive content from high-profile co-owners like Jay-Z, Beyoncé, and Kanye West gave only temporary boosts. Meanwhile, rivals continued to enhance user experience with features like AI playlists and smart recommendations, making music discovery more personal—areas where TIDAL lagged.

In recent months, TIDAL lowered its subscription price to $10.99, matching industry standards. But this move came late, as millions of users had already committed to other platforms. While TIDAL’s pricing is now competitive, the giants have an established lead in market share and brand loyalty.

Ultimately, TIDAL’s efforts to course-correct have struggled to make a lasting impact. Despite price adjustments, its delayed adaptations have left the platform with little room to recover.

The Hard Road Ahead

Jack Dorsey’s “startup” plan for TIDAL involves cutting the company down to its basics. This involves focusing on engineering and design, while removing product management and marketing teams.

Dorsey’s goal is clear: he believes a smaller, focused TIDAL can move faster and create unique features rather than trying to compete directly with giants like Spotify, Apple, and Amazon. This worked for Dorsey with Twitter and Square, where small teams could move quickly in open markets.

However, the music-streaming landscape is different.

For TIDAL to succeed with a “startup” approach, it would need to introduce fresh features quickly.

Startups can be bold with new ideas because they have fewer layers. But TIDAL’s rivals, with their much larger budgets, can copy new features and build on them fast. Without product management to understand listener needs or marketing to attract new users, TIDAL risks creating features that may not connect with its audience.

But in this field, marketing is key to growth and keeping users loyal. Spotify’s success, for example, relies on constant engagement with users through playlists, events, and promotions. Without similar strategies, TIDAL may struggle to hold onto its listeners.

To survive, TIDAL will need to focus on what it does best.

High-quality sound and artist-friendly policies could appeal to a loyal base of audiophiles or indie music fans. But even with this focus, TIDAL needs ways to find and keep these listeners.

Leaning into exclusive content or giving access to rising artists might help TIDAL create a unique identity and stand out from rivals. This approach may fit with Dorsey’s vision of focusing on core features and a specific audience rather than aiming for a broad market.

In the end, Dorsey’s plan gives TIDAL two options: redefine itself in a way that connects deeply with a smaller audience or risk becoming obsolete.

The startup approach could help TIDAL create a strong, unique presence, but without product and marketing support, this vision may be hard to keep going.