Downtown Music Holdings has confirmed a report that it is laying off CD Baby employees, saying the cuts are part of its strategy to consolidate its business.
Downtown describes the move as a strategic effort “to support the evolving needs of artists and the industry.”
“We are integrating some CD baby functions within the city center and reallocate resources to realize long-term growth opportunities. Unfortunately, this resulted in certain roles and positions at CD Baby being eliminated. downtown music holdings Tell MBW in a statement.
This statement was made in response to advertising billboard A report published on Tuesday (December 10) quoted “people familiar with the matter” as saying that CD Baby has recently shrunk its creator services team.
While the exact number of employees affected was not disclosed, the layoffs represent a continuation of recent layoffs in the music industry.
The restructuring follows similar recent developments tidalThe company and CD Baby’s rival DIY distribution platform will reportedly lay off a quarter of their staff Release boythe company confirmed in late October that it planned to lay off employees 37 employees in early November. This means 50% DistroKid’s union employees.
Main tags like universal music group (UMG) and Warner Music Group WMG also implemented significant layoffs and divisional restructuring last year.
In February this year, UMG confirmed details of a “redesign” of its organizational structure, which it said would result in 250 million euros Cost savings by the end of 2026 ($263 million). Burundi Before The report said the reorganization is expected to affect “hundreds of people” in the first quarter of 2024.
Following spending cuts announced in February 600 WMG revealed in September that it would sack another employee 150 as part of a revised strategic restructuring plan. The restructuring of WMG resulted in Max Lusada At the end of September, he became the global CEO of the recorded music department.
For CD Baby, the restructuring is based on the “Downtown plan to bring businesses closer together,” the company said. MBW.
“We would like to recognize these employees for their achievements during their tenure at CD Baby. Their dedication to innovation has helped CD Baby become a globally recognized leader in distribution. Going forward, we will continue to be committed to this music first and groundbreaking approach to create services that benefit artists today and tomorrow.
The latest development comes as the city center is reportedly considering a potential sale. advertising billboard It was reported in July that the company had been in talks with private equity firms and at least one major music company about a sale.
downtown, overseeing CD Baby and leakagerepresenting well-known artists such as John Lennon, Yoko Ono, Miles Davis, and Wu-Tang Clan. In recent years, the company has been shifting its focus from owning copyrights to providing services to copyright holders.
CD Baby became part of Downtown in 2019, which acquired AVL Digital Group and its portfolio of businesses, including CD Baby, advertising version, Dashgo and Sandrop.
global music business
