CD distribution services Downtown Music and Soundrop fired “several” team members “due to current economic conditions.”
Downtown employees reached out to Digital Music News about the layoffs over the weekend, including in their message a copy of an internal email that management sent to reveal the sad news.
The company’s layoff announcement, dated October 5 and written by downtown HR director Love Welchel (who started work last month), attributes the decision to “these unstable times,” in addition to the economic conditions originally mentioned.
“A difficult decision was made yesterday, and CD Baby and Soundrop underwent a reduction in their staff,” the email said. “Although it was a difficult decision, it was necessary due to the current economic conditions, and it will allow us to set CD Baby and Soundrop up for long-term growth and success in these uncertain times.
“Of course, this is a difficult moment. And we understand that people can be sad and worried. We’ll get it. But, rest assured, this decision was not easy; but it was made with maximum respect, dignity and care for all those affected. If there are questions or concerns, please let me hear from you,” the text concludes.
It’s unclear how many people went ahead and expressed their questions and concerns to Welchel, but the city center employees who forwarded the email to DMN spoke out against the alleged reasons for the staff cuts.
“Downtown Management has just announced via email that about 30 CDBaby and Soundrop employees will be laid off,” the ticked team members informed us. “They explained that it happened because of economic conditions.”
“That’s not true. The truth is that they are going to stop several services provided by CDBaby and Soundrop, and now employees are becoming a corrective variable for the business,” they continued.
Time will tell whether CD Baby and Soundrop are really ready to “stop several services,” but CD Baby (which closed its online music store in the first quarter of 2020 and used Trolley in 2022 to optimize payments) confirmed the layoffs themselves to DMN.
“Last week CD Baby and Soundrop parted ways with several employees of the companies,” CD Baby told us. “It was a difficult decision, but it was necessary to better bring CD Baby and Soundrop into the current economic environment and set the companies up for long-term growth and success. These decisions were made with great care and sympathy for the victims, as well as with an eye to the future success of CD Baby and Soundrop.”
Earlier this year, Downtown announced a “significant expansion of its operations in Spanish-speaking Latin America,” and in April its subsidiary FUGA opened an office in Berlin.