DistroKid, a well-known DIY distributor, plans to lay off 37 employees in early November.
According to the DistroKid Alliance, which announced via Instagram over the weekend, “DistroKid plans to lay off 50% of its unionized workforce on November 2.”
The statement added: “This decision affects 37 dedicated employees, including five of the seven bargaining committee members. No non-union staff have been placed on administrative leave.
DistroKid has previously claimed to be the “world’s largest independent music publisher” and estimated its distribution volume 30-40% All the new music in the world.
The company said its platform was overtaken 2 million artist.
News of the layoffs first appeared in advertising billboardDistroKid’s customer service team was reportedly affected by the move.
A spokesperson for DistroKid said: advertising billboard The platform is “committed to continuously strengthening support for independent artists around the world by expanding to 24/7 customer service and faster response times.”
“We have identified solutions that allow us to provide a more scalable and superior service, ensuring artists around the world receive the high-quality support they deserve.”
DistroKid spokesperson
The statement added: “To achieve this, we have identified solutions that allow us to provide a more scalable and superior service, ensuring artists around the world receive the high-quality support they deserve. This includes continuing to focus on Consider difficult decisions that may impact valuable team members while providing the best possible artist experience.
To quote the union, advertising billboard Reports say affected employees will be “replaced”[d]… overseas workforce” and the layoffs affect about “a quarter” of the company’s employees, although another source told the publication that the total number of employees affected is “closer to 15%.”
DistroKid employees appear to have joined the National Association of Broadcast Employees and Technicians-Communications Workers (NABET-CWA) union in April.
In a statement issued at the time, NABET-CWA claimed that “workers at the company were subjected to a brutal anti-union campaign that included multiple, one-on-one anti-union meetings and near-constant anti-union propaganda.” “The company’s president also addressed workers Several anti-union letters were sent out”.
The statement added: “Despite workers’ attempts to dissuade them, they voted 45 to 28 in favor of joining NABET-CWA. The success of this effort was attributed to the unified efforts of the organizing committee and the entire event was kept secret from management until it was made public,” the statement added. It was a rare early coup for the team. They also credited NABET-CWA Local 51016 President Bill Bores for his unwavering support. Dunau especially thanked CWA District 9 Assistant Director of Organization Yonah Diamond for her consistent support throughout the 18-month campaign. guide.
DistroKid employees are all working remotely but are part of NABET-CWA’s Local 51016 office in New York.
A statement posted by the DistroKid union via Instagram over the weekend claimed that “after previously agreeing to allow union members to observe bargaining, DistroKid now does not want to meet with us in the presence of an audience.”
“These cuts are intended to save millions of dollars and represent less than 0.2% of its $1.3 billion valuation,” the company added.
DistroKid received an investment from Insight Partners in August 2021, which valued the distribution platform at $1.3 billion.
Upon completion of the transaction, the Boston-based growth equity firm Silversmith Capital PartnersLed DistroKid’s first outside investment in 2018, retaining a “meaningful ownership position” and remaining on the DistroKid board of directors.
Spotify retains its minority stake in DistroKid following investment from Insight Partners; A few months later, SPOT sold two-thirds of the shares $167 million.global music business
