Layoffs Hit Rdio
This story first appeared on Billboard.com.
Rdio, the streaming music service which shares founders with Skype, has gone forward with a round of layoffs today. Specific numbers weren't released, but an earlier report from TechCrunch reported the layoffs to number 35.
"Rdio confirms making workforce reductions yesterday to improve its cost structure and ensure a scalable business model for the long-term," Nada Antoun, director of Global Public Relations at Rdio, said in a statement.
Rdio doesn't release subscriber numbers as Spotify regularly does, but is believed to be lagging behind the Swedish steaming service which, at last announcement, has over 6 million customers. Deezer, considered the strongest competitor to Spotify with a rapidly-expanding base of 5 million subscribers, is set to launch in the U.S. next year after securing a telco partnership. As well, Beats' anticipated streaming service Daisy is also expected to launch in 2014, crowding the music streaming marketplace ever further.
The company has had a somewhat busy year, launching a free Pandora-like radio service in North America and Australia, striking up a beneficial partnership with Cumulus Media, as well as partnering with Live Nation to power the company's website audio streams, expanding into Asia and launching Vdio, an a-la-carte video streaming service open to Rdio subscribers.
The company is currently shopping for a new CEO as well. The current chief, Drew Larner, announced his departure in June of this year.