Rhapsody and Napster have confirmed a round of layoffs amid reports that the former is closing its San Francisco office.
“As part of our plan to better position Rhapsody/Napster for long-term profitability and accelerated growth in a competitive global market, we have a new, streamlined structure for the company that unfortunately impacts a number of positions across our global offices,” said CEO Mike Davis in a statement provided to Hypebot.
“The difficult actions we are taking now will create operational efficiency and position Rhapsody/Napster for growth while further expanding our global partnerships, which last year contributed to a 35% increase in paid subscribers.”
The company’s subscriber base may be growing, but like all its rivals it is a lossmaking business: in 2015 its revenues grew by 16.4% to $202m, but its net losses grew by 66.3% to $35.5m.
The two services (Rhapsody in the US plus Napster elsewhere) had around 3.6 million subscribers at the end of 2015.
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