It seem like SFX is doing some “cleanup” at Beatport. The company laid off almost has let go of around 20 employees in their Denver headquarters and shut down the San Francisco office. That a lot of people considering that the whole company has around 70 people in total. Now this is not a total shock to some people since the Electronic digital music site still operating at a loss after Q3 saw it lose $1 million on $12.1 million of revenue and SFX priced shares at $13 but they’ve fallen to $11.60 since.
This is the official Statement from SFX:
“With the additional resources provided by SFX, we are making significant new investments in Beatport and focusing on providing the best possible experience for our users – the DJ, the producer, the labels and the entire Electronic Music Culture community. To allow us to adapt and improve our service, it was necessary to make some organizational changes. We have closed our San Francisco office, reorganized our engineering team, and cut some positions in Denver. Beatport has always been about innovation and connection and these moves allow us to focus on that. With the recently announced acquisitions of PayLogic and Arc90, this refocus on maximizing Beatport as the definitive site for everything related to Electronic Music is indicative of our commitment to igniting the simmering Revolution of this astounding movement, Electronic Music Culture. We look forward to unveiling a number of exciting new technology initiatives in 2014.”
So what does this mean for the electronic consumer??. Well not much everything will be business as usual. Except for the fact that some of the services will be shut down if they are not profitable for the company due to maintenance costs. Let see what the future holds.
Source: Techcrunch.
