On Tuesday (March 11), CFO Tom Barry said the company saw an advertising “drop-off” from tariff concerns and that it remains “cautious about where the ad industry is going."
The company, which filed for Chapter 11 bankruptcy last year, confirmed it "made workforce reductions to ensure a strong and resilient future for the business."
Interim CEO Tom Conrad said the company had “become mired in too many layers” to collaborate effectively and make decisions.
While there were radio success stories for individual artists in 2024, the industry's increasing decline was the dominant narrative.
News of the CD Baby layoffs comes just a month after its competitor, Distrokid, placed 37 union employees on "administrative leave."
A spokesperson says "very few jobs" have been affected in the 10,000-employee company.
A current employee at the distributor says that the 37 employees worked in their Quality Control and Artist Relations departments.
Two decades ago, the business endured huge layoffs amid a painful period of sales decline. This time, experts say the industry’s cyclical nature is more to blame.
Several members of the music and talent team at the Nashville channel have been impacted by the ongoing layoffs at the parent company.
This year’s restructuring plan has reduced WMG’s head count by 750 and will save $260 million annually.
