KEY POINTS
- An X user said only “three people are left” at the company’s music blog Bandcamp Daily
- Around 120 employees were reportedly affected by the mass cuts
- Epic Games acquired Bandcamp in March 2022
Online audio distribution platform Bandcamp is reportedly letting go of nearly half of its workforce amid its sale to music licensing company Songtradr.
Epic Games, which acquired the Oakland, California-based company just a year ago, laid off roughly half of the staff after finalizing its sale to Songtradr on Monday, reports said. An X user said only “three people are left” at the company’s music blog Bandcamp Daily.
The exact number of affected employees is unknown. Songtradr did not immediately respond to International Business Times‘ request for comment.
about half the company was laid off today. some of the most incredible people i’ve ever worked with, including two of my amazing editorial colleagues @diamonde and @atoosamoinzadeh and most of the incredible support staff among many others. this is a loss, no two ways about it
— jj skolnik (@modernistwitch) October 16, 2023
Songtradr said “50% of Bandcamp employees have accepted offers to join” the new ownership, Kotaku reported. It noted that operating costs at the music platform significantly increased over the past years and “some adjustments” were necessary to ensure business sustainability.
The outlet reported that “the rest of the roughly 120 employees” who weren’t given offers will be laid off by Epic Games. Departing workers are expected to receive six months of severance pay.
“Today, Epic Games’ sale of Bandcamp to Songtradr was closed and at least half of Bandcamp’s staff was laid off,” Bandcamp United, which represents Bandcamp employees, shared on X, adding it will resume negotiations Wednesday.
A former employee said she was “devastated” but was glad “to finally have an answer either way.”
I was just officially laid off by Bandcamp/Epic Games/Songtradr. I am devastated but am glad to finally have an answer either way.
If you hear of any employment opportunities in the music/label/vinyl world, please keep me in mind. I’m really good at what I do and will need work
— Ava Mirzadegan 🕊️ “Book Song” out now (@avamirzadegan) October 16, 2023
Some affected workers, including a data leader and social media editor, took to LinkedIn to confirm the news.
In a statement following the acquisition, Songtradr said it will “continue to operate Bandcamp as a marketplace and music community with an artist-first revenue share.”
There was confusion among staff as they were mostly left in the dark about the company’s plans. A former employee told Kotaku that Bandcamp workers have not heard from co-founder Ethan Diamond since the sale by Epic Games was announced. Two others claimed no one from Epic’s leadership team came forward to address their concerns.
Meanwhile, the fate of Bandcamp United is unclear as it seeks to get recognition from its new owner. Songtradr said it had received the group’s letter and was “reviewing” it.
Epic Games laid off about 16% of its workforce or roughly 830 employees last month. Its CEO Tim Sweeney cited overspending as the reason for the layoffs.
“I had long been optimistic that we could power through this transition without layoffs, but in retrospect, I see that this was unrealistic,” Sweeney told employees.
Epic acquired Bandcamp in March 2022.
“In Epic, we’ve found a partner who believes as deeply as we do that the future of music, and art itself, depends on the creation of equitable and inclusive communities like the one our fans and artists have helped to build,” Diamond said at the time.
