Online Audio Platform Bandcamp Cuts Half Of Workforce After Epic Games Finalizes Its Sale

Online audio distribution platform Bandcamp is reportedly letting go of nearly half of its workforce amid its sale to music licensing company Songtradr.

Epic Games, which acquired the Oakland, California-based company just a year ago, laid off roughly half of the staff after finalizing its sale to Songtradr on Monday, reports said. An X user said only "three people are left" at the company's music blog Bandcamp Daily.

A spokesperson for Songtradr told International Business Times that "of 118 employees, 60 were offered employment" and 58 of them accepted the offers.

Due to a "significant" increase in Bandcamp's operating costs over the past few years, the company "required some adjustments to ensure a sustainable and healthy company that can serve its community of artists and fans," the spokesperson told IBT in an emailed statement.

"After a comprehensive evaluation, including the importance of roles for smooth business operations and pre existing functions at Songtradr, 50% of Bandcamp employees have accepted offers to join Songtradr. Those who didn't receive offers will receive severance from Epic as part of their layoffs as communicated on September 28th," the spokesperson added.

"Today, Epic Games' sale of Bandcamp to Songtradr was closed and at least half of Bandcamp's staff was laid off," Bandcamp United, which represents Bandcamp employees, shared on X, adding it will resume negotiations Wednesday.

A former employee said she was "devastated" but was glad "to finally have an answer either way."

Some affected workers, including a data leader and social media editor, took to LinkedIn to confirm the news.

In a statement following the acquisition, Songtradr said it will "continue to operate Bandcamp as a marketplace and music community with an artist-first revenue share."

There was confusion among staff as most were reportedly left in the dark about the company's plans. A former employee told Kotaku that Bandcamp workers have not heard from co-founder Ethan Diamond since the sale by Epic Games was announced. Two others claimed no one from Epic's leadership team came forward to address their concerns.

Meanwhile, the fate of Bandcamp United is unclear as it seeks to get recognition from its new owner. Songtradr said it had received the group's letter and was "reviewing" it.

Epic Games laid off about 16% of its workforce or roughly 830 employees last month. Its CEO Tim Sweeney cited overspending as the reason for the layoffs.

"I had long been optimistic that we could power through this transition without layoffs, but in retrospect, I see that this was unrealistic," Sweeney told employees.

Epic acquired Bandcamp in March 2022.

"In Epic, we've found a partner who believes as deeply as we do that the future of music, and art itself, depends on the creation of equitable and inclusive communities like the one our fans and artists have helped to build," Diamond said at the time.

(Updated at 10:36 p.m., Oct. 17, 2023. This article has been updated to include statements from a Songtradr spokesperson.)