Downtown Music Holdings has confirmed a report that it is eliminating roles at CD Baby, saying the layoffs are part of its strategy to consolidate its operations.
Downtown described the move as a strategic effort “to support the changing needs of artists and the industry.”
“We are consolidating certain CD Baby functions within Downtown and re-allocating resources towards long-term growth opportunities. Unfortunately, this has resulted in the elimination of certain roles and positions at CD Baby,” a spokesperson for Downtown Music Holdings told MBW in a statement.
The statement was in response to a Billboard report published on Tuesday (December 10) that cited “a source close to the matter” claiming CD Baby had recently reduced its creator services team.
While specific numbers of affected employees were not disclosed, the layoffs represent a continuation of recent workforce reductions across the music business.
The restructuring follows similar recent developments at TIDAL, which was reported to be laying off a quarter of its staff, as well as at CD Baby’s rival DIY distribution platform DistroKid, which confirmed in late October that it was planning to lay off 37 employees at the start of November. This represents 50% of DistroKid’s unionized staff.
Major labels like Universal Music Group (UMG) and Warner Music Group (WMG) have also implemented significant workforce reductions and departmental restructurings over the past year.
In February, UMG confirmed details of a “re-designing” of its organizational structure, which it says will generate EUR €250 million (USD $263 million) in savings by the end of 2026. Bloomberg previously reported that the restructuring was expected to affect “hundreds” in the first quarter of 2024.
After announcing in February that it would cut 600 employees, WMG revealed in September that it would be laying off another 150 staff as part of a revised strategic restructuring plan. The shakeup at WMG led to the exit of Max Lousada as its global CEO of Recorded Music at the end of September.
For CD Baby, the restructuring builds on “Downtown’s plan to bring the businesses closer together,” the company told MBW.
“We want to recognize the achievements of these staff members during their tenure with CD Baby. Their dedication to innovation helped CD Baby to become a globally recognized leader in the distribution space. Going forward, we will stay committed to this music-first and pioneering approach, building the services that benefit artists today and in the future,” Downtown said.
The latest development comes as Downtown was reported to be considering a potential sale. Billboard reported in July that the company had been in talks with private equity firms and at least one major music company regarding a sale.
Downtown, which oversees CD Baby and FUGA, represents high-profile artists such as John Lennon, Yoko Ono, Miles Davis, and Wu-Tang Clan. The company has been shifting focus in recent years from owning copyrights to providing services for copyright holders.
CD Baby became part of Downtown in 2019 when the latter acquired AVL Digital Group and its portfolio of businesses, including CD Baby, AdRev, DashGo and Soundrop.
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