DistroKid has announced plans to cut a quarter of its workforce, affecting 37 employees who have already been placed on administrative leave.
The cuts will hit the company’s customer support department hardest, with plans to replace these roles with overseas workers, according to the company’s union. The affected staff represent half of DistroKid’s unionised workforce, while non-union positions remain untouched.
Employees were told their salaries would be redirected to marketing efforts, union representatives said on Instagram. Billboard has independently verified these claims with two company staff members.
When asked about the changes, DistroKid said it aims to provide round-the-clock customer service with faster response times. The company, which helps musicians distribute their work to streaming platforms, added that it needed to make “difficult decisions” to improve its artist support services.
The layoffs are set to take effect on November 2nd. DistroKid Union, which formed earlier this year, released details of the cuts through social media channels.
The company describes itself as the world’s largest independent digital music distributor, often marketing itself as the ‘easiest way’ for artists to get their music on to streaming platforms.
