Napster has just completed a round of layoffs, according to sources within the organization.
The sources pointed to a 10 percent workforce reduction, focused within the programming and marketing divisions. Employees who were included in the downsizing were told to exit immediately, and were not given prior warning, per the reports. While the mood inside Napster is predictably grim following the events, top management has reportedly emphasized that the layoffs were not indicative of any larger trend, and dismissed any discussions of a future sale of liquidation.
The possibility of the layoffs was first tipped by Digital Music News on January 17th, also following information from sources inside Napster. At that time, a Napster representative denied the allegations, noting that there were “no imminent plans for significant layoffs”. Soon after, the company revealed a subscriber total of 500,000, which doubled levels from just one year ago. Napster representatives were not available to respond to the latest information, though the story surfaced late on Tuesday. More information will be presented as it becomes available.