The Website TechCrunch is reporting that Beatport has laid off multiple employees in both their San Francisco and Denver office locations. Here's the scoop-
Multiple sources confirm the 88-person startup laid off large sets of engineers in SF and Denver this week. [Update: Beatport has confirmed the layoffs.] SFX, the dance music juggernaut that acquired Beatport in February, is axing teams that weren’t making money.
Yet now, a source tells us “[SFX] is not concerned with anything but the store. It was crazy. It was a fucking bloodbath for sure. Some of the people laid off were working there for almost ten years.” Those include six engineers in SF — essentially the whole office.
SFX has confirmed the layoffs, issuing the following statement-
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.”
TechCrunch goes on to report that Beatport will continue to operate with a skeleton crew, most likely with the money-losing divisions shutting down shortly. It's rumored that now ex-Beatport employees will receive severance packages that will carry them into early 2014.