After Songtradr took over Bandcamp, the music platform lost half of its staff, Variety reported. Songtradr spokeswoman Lindsay Nahmiache admitted that only 58 of Bandcamp’s 118 employees received job offers after the acquisition. One of the remaining employees confirmed Nahmiache’s statement, saying that half of the people on the company’s Slack suddenly disappeared and that an account owned by co-founder and former CEO Ethan Diamond had been deactivated. Some of the former employees whose contracts were not renewed have taken to social media to share that they have been kept in the dark and in limbo in recent weeks.
The move appears to have been financially motivated: “Over the past few years, Bandcamp’s operating costs have increased significantly,” the statement reads. “Changes were needed to ensure a sustainable and healthy company that can serve the community of artists and fans. We are committed to maintaining Bandcamp’s existing services … We share a deep passion for all things music and will continue to serve artists, labels and fans.”
Similar things were said in an email sent by Songtradr CEO Paul Wiltshire to the remaining Bandcamp employees. In it, he stated that Bandcamp was not financially sound, and that while revenue was stable, operating costs had “increased significantly, which made it impossible to continue running the business in the current way“.
Songtradr has acquired Bandcamp from Epic Games in September, just a year and a half after the game developer’s surprise acquisition of the music company.