The layoff ax is making its way through Rdio, too.
Rdio is making across-the-board staff reductions.
A spokesperson told TechCrunch that the cuts are being made “to improve its cost structure and ensure a scalable business model for the long-term“. There are rumors circulating that these cuts might affect up to one-third of Rdio’s workforce.
Prior to the cuts, Rdio had about 130-140 employees, with roughly 30-40 getting chopped according to one source to Digital Music News. The development follows a relative surge in paid subscribers for Rdio: according to other sources inside the organization, Rdio now has over 250,000 paying subscribers. Separate sources also told TechCrunch that 90 percent of these subscribers are on the unlimited plan, the priciest one available. But those gains are coming at a cost: Rdio has been spending a large amount of money on marketing and advertising, including a splashy, prominent billboard in Times Square.
Numbers-wise, Rdio’s competitors are dominating: Spotify has about 6 million subscribers, Muve Music is approaching 2 million, and Rhapsody has about one million. Deezer will soon be entering the US market, and Beats Music is ‘coming soon’. The question is where that puts Rdio, a great service that seems to be getting lost in the super-saturation.
In a move unrelated to these cuts, CEO Drew Larner is temporarily filling his role until a new, replacement CEO is found. Earlier this year, Larner said that he was leading the search for a new CEO; once the replacement is found Larner will continue as executive chairman.