In a move that has the music-tech industry more than a bit shaken up, Beatport laid off almost all of their developers over the last week in a money-saving, organizational move by now-parent company SFX Entertainment.
SFX has all but closed the San Francisco offices and laid off virtually their entire engineering team, telling TechCrunch that “organizational changes” had to be made.
“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.”
The company’s plan to thin out their ranks and spending comes in the wake of a $1 million-loss in Q3 for Beatport and some truly disappointing Wall Street performances from SFX, whose share price has dipped from $13 to 11.795 since its high-profile IPO. Sources called the incident a “f*cking bloodbath” when speaking to TechCrunch about the widespread layoffs, which even affected 10-year employees of the company. Apparently, HR officials flew out to SF to ensure the team wouldn’t destroy the office and its contents. Focusing on the music store, SFX has reportedly left only those personnel necessary to keep other non-store departments marginally operational.
Check back for more updates on the future of Beatport and SFX.