Napster does the math: layoffs commence with 10-percent of workforce lopped off

“Napster has just completed a round of layoffs, according to sources within the organization. The sources pointed to a 10 percent workforce reduction, focused within the programming and marketing divisions. Employees who were included in the downsizing were told to exit immediately, and were not given prior warning, per the reports. While the mood inside Napster is predictably grim following the events, top management has reportedly emphasized that the layoffs were not indicative of any larger trend, and dismissed any discussions of a future sale of liquidation,” Digital Music News reports.

Full article here.
The possibility of the Napster layoffs was first reported by Digital Music News on January 17th, based upon information from sources inside Napster. At that time, a Napster official denied the allegations, noting that there were “no imminent plans for significant layoffs.” The next day, Napster issued a warmed-over press release proclaiming their rather weak subscriber numbers and quoting Napster CEO Chris Gorog, as being “extremely excited about the future of Napster.” Why Gorog is excited about bankruptcy proceedings is beyond us. Perhaps he just has an affinity for finality?

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38 Comments

  1. “Why Gorog is excited about bankruptcy proceedings is beyond us. Perhaps he just has an affinity for finality?”

    I’ve been laughing for hours! This is one for the memory banks for later use.

  2. Gorog is just trying to keep it afloat long enough hoping that M$ will come along and bail them out. I don’t see that happening though. No sense in throwing good money after bad.

  3. The Gorog’s of this world wouldn’t be fazed by company bankrupcy. They have their golden parachutes and will land on another unsuspecting company foolish enough to make them executives. I just feel sorry for the employees and customers left holding the bag.

    MW: expected. The downfall of Napster is to be expected.

  4. This is like watching a terminal coma patient slowly withering away.

    “Why Gorog is excited about bankruptcy proceedings?” I think Gorog might just be excited to get out of his depressing office.

    What’s next? An advertising and distribution deal with Pan Am, Webvan, and Acorn Computers?

  5. Hmmmmmmm, so what happens to everyone’s music if they have a Napster account? Does it just stop working? That’d suck, but then again Napster suck!

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  6. > Employees who were included in the downsizing were told to
    > exit immediately, and were not given prior warning

    Excuse me? Is this normal in the US?
    Even Bangladesh has more employee protection…

  7. “Gorog is just trying to keep it afloat long enough hoping that M$ will come along and bail them out. I don’t see that happening though. No sense in throwing good money after bad.”

    Why not, Microsoft has been throwing their money away for years.

    (See WebTV, VISTA aka Longhorn development, media center PC’s)

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