Downtown Music Holdings Confirms Layoffs
Downtown Music Holdings has confirmed reports of job cuts at CD Baby, stating that the layoffs are part of a strategy to consolidate operations.
Downtown referred to the decision as a strategic effort to “support the changing needs of artists and the industry.”
“We are consolidating certain CD Baby operations in the city center and reallocating resources towards long-term growth opportunities. Unfortunately, this has resulted in the elimination of certain roles and positions at CD Baby,” a CD Baby spokesperson stated. Downtown Music Holdings mentioned BIE in the statement.
Details on the Layoffs
The statement was issued in response to a Billboard report published on Tuesday (Dec. 10), which cited a “source close to the matter,” claiming that CD Baby had recently cut its creator services team.
While the precise number of affected employees was not disclosed, the layoffs are part of a larger trend of workforce reductions within the music industry.
This restructuring comes in light of recent events at TIDES, which is reportedly laying off a quarter of its staff, alongside rival DIY distribution platform CD Baby. Moreover, DistroKid confirmed at the end of October that it plans to cut 37 employees in early November, amounting to 50% of its union members.
Major labels like Universal Music Group (UMG) and Warner Music Group (WMG) have also implemented significant staff reductions and departmental restructuring over the past year.
In February, UMG announced details of a “redesign” of its organizational structure, projecting savings of 250 million euros ($263 million) by the end of 2026. Bloomberg previously noted that this restructuring is expected to impact “hundreds” of employees in the first quarter of 2024.
Following the February layoffs impacting 600 employees, WMG revealed in September that it would let go of another 150 employees as part of its revised strategic restructuring plan. The shake-up at WMG resulted in the exit of Max Lousada as global CEO of Recorded Music at the end of September.
For CD Baby, the restructuring builds on Downtown’s “plan to bring businesses closer together,” according to the company. BIE.
“We want to recognize the accomplishments of these employees during their time at CD Baby. Their commitment to innovation has helped CD Baby become a globally recognized leader in distribution. Moving forward, we will continue to pursue this innovative, music-focused approach, creating services that benefit artists today and into the future,” Downtown stated.
This development follows reports that the company was contemplating a potential sale. In July, Billboard revealed that Downtown was in discussions with private equity firms and at least one major music company regarding a sale.
Downtown, which is associated with CD Baby and FUGA, represents renowned artists such as John Lennon, Yoko Ono, Miles Davis, and Wu-Tang Clan. In recent years, the company has shifted its focus from owning copyrights to offering services to copyright holders.
CD Baby became part of Downtown in 2019 when it acquired AVL Digital Group and its portfolio of businesses, including CD Baby, AdRev, DashGo, and Sounddrop.
