Why are Bandcamp layoffs happening? All you need to know about Songtradr acquisition

After its recent acquisition by Songtradr, Bandcamp laid off over half of its workforce as the result of an 'increase in operating costs" over the last few years. A similar cost-cutting layoff for over 16% of employees was also conducted in the previous year when the music platform was under the banner of EPIC Games.

The acquisition process for the indie music platform started earlier this year. At the time EPIC Games had already hinted that over 250 employees would be leaving the company either after receiving offers from Songtradr or as a result of the business divesture. As such, with the acquisition process successfully completed, Songtradr offered employment to 50% of its employees, while the others did not have their contracts renewed.

The popular music platform lays off over half of its employees following the increase in operating costs (Image via B.)

Talking to the press about the recent lay-offs, a representative for Songtradr commented that over the last few years, Bandcamp's operating costs have increased significantly. The representative added that the company needed adjustments to make sure that they have a "sustainable and healthy" company that can serve its community of artists and fans.

"After a comprehensive evaluation, including the importance of roles for smooth business operations and pre-existing functions at Songtradr, 50% of B. employees have accepted offers to join Songtradr," the representative noted.

Pressing on how the Califonia-based company is committed to delivering sustainable and healthy services for Bandcamp fans and artists, a representative for Songtradr commented:

“We are committed to keeping the existing B. services that fans and artists love, including its artist-first revenue share, B. Fridays, and B. Daily. We are looking forward to welcoming B. into our musically aligned community. We share a deep passion for all things music and will continue to serve artists, labels, and the fans who make it all possible.”

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Half of Bandcamp employees laid off amid increase in operating costs

Over 50% of Bandcamp employees working at the popular indie music platform were left out of the loop soon after the brand was acquired by Songtradr. While select employees working at the music platform received offer letters from Songtradr, over 50% of them were informed about their lay-offs. As per Songtradr, the layoffs are an attempt to make the music platform more sustainable as it has been experiencing an "increase in operational costs" over the past few years.

A California-based music licensing company, Songtradr acquired the indie music platform from EPIC Games this year for an undisclosed amount. EPIC Games had also bought Bandcamp over 18 months ago and then decided to sell it off to Songtradr as EPIC was "spending much more than it was earning."

Cost-cutting layoffs of a similar fashion have been a common spectacle in recent years and have been often associated with bigger brand names like Amazon, Microsft, and Google, among others.

Songtradr acquired Bandcamp from EPIC Games for an undisclosed amount (Image via B.)

Roughly 60 employees were affected by this decision, and a large number of people have been coming out on social media commenting on how they or their colleagues were relieved from their positions abruptly. The laid-off employees will be receiving severance packages from EPIC, as confirmed by Songtradr.

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The indie music platform, Bandcamp, is popular among indie music fans both as a music store and a community that allows them to discover and connect with artists they like. The platform also allows fans to directly support their favorite artists. Though not much will change for fans with the music platform coming under the Songtradr banner, it will allow artists to get their music officially licensed to multiple media forms.