Tidal, the music streaming service owned by Block, is implementing another round of significant layoffs as part of a company-wide reorganization effort. Jack Dorsey, who acquired Tidal in 2021 for $300 million, announced the changes in a staff memo on Wednesday.

The restructuring will primarily impact product management and marketing functions, with potential reductions in engineering roles to follow. Company insiders estimate approximately 100 employees—roughly 25% of Tidal's workforce—could be affected by these cuts.

This marks Tidal's second major downsizing in less than a year, following a 10% staff reduction in December. The company aims to operate "like a startup again," focusing on engineering and design while streamlining operations.

Despite its association with Jay-Z and subsequent acquisition by Block, Tidal has struggled to compete with major streaming platforms. Current market leaders Spotify, Apple Music, YouTube Music, and Amazon Music control over 97% of U.S. music streaming subscriptions, leaving Tidal with a minimal market share.

A Tidal spokesperson confirmed to Fortune that the company is "going to be smaller, focus on fewer things, and move with a relentless approach to product development" to better serve artists.

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