TIDAL to lay off more than 10% of its workforce
“The growth of our company has far outpaced the growth of our business,” says Jack Dorsey, CEO of TIDAL’s parent company Block, Inc.
Credit: Jakub Porzycki/NurPhoto via Getty Images
TIDAL’s parent company Block, Inc. has announced it will be making cuts – meaning 10% of TIDAL’s team will be out of jobs over the coming months.
“The growth of our company has far outpaced the growth of our business,” Block, Inc founder, billionaire Jack Dorsey, warned employees back in November.
The 10% cut will result in roughly 1,300 of the 13,000 strong team being let go.
“The team is going to be smaller than we are today by the end of next year,” Dorsey wrote in his notice to employees. The cuts will be determined “through performance management, scoping our work and restructuring to remove duplication and redundancy”.
“I believe it’s important to be upfront and transparent about all this, so you all can make your own decisions if you need to,” he expanded. “You may not be up for the uncertainty or shrinking our team, and want to leave. That’s perfectly reasonable. But I’d rather us provide the information than to work secretly in the dark.”
According to Block, Inc’s recent message to shareholders, Dorsey plans to cap the number of workers Block, Inc will take on. It will be “held firm at 12,000 people until we feel the growth of the business has meaningfully outpaced the growth of the company. We know the inverse is true today,” Dorsey wrote, despite the report also sharing Block, Inc’s third-quarter earnings that boasted a 21% year-over-year increase in profits, raising the company value to $1.9 billion.
Dorsey, who also founded Twitter and Cash App, has also made a hefty sum from his company Square. The software has reportedly processed as much as $46.22 billion worth of transactions, with Dorsey making 3.5% per transaction.
While the lay-offs may disappoint TIDAL workers, Dorsey believes it is in the company’s best interest. “Everything Square-core and I do will be done with transparency and straightforward reasoning you’ll have access to,” he concluded. “You may not agree with our decisions, but we’ll do our best to explain why we believe they are right.”
