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Rdio lays off untold number of employees to 'ensure a scalable business model'

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Rdio billboard 1020
Rdio billboard 1020

Rdio is today feeling the effects of its ongoing war with Spotify and other music streaming services. The company has confirmed layoffs that affect a number of employees — up to one-third of its entire staff, according to TechCrunch. Rdio says the unfortunate move will ultimately help "improve its cost structure and ensure a scalable business model for the long-term." Rdio isn't revealing any specific numbers to counteract the bad news, but the company insists things are looking up. "Since the end of last year, we’ve tripled our number of new users," a spokesperson told TechCrunch. Rdio also says that 90 percent of subscribers are on its $9.99 unlimited streaming plan, a healthy conversion rate by any standard.

But clearly Rdio has run into some trouble, flanked by competition from Spotify, Google Play Music All Access, and free "radio" services like Pandora and iTunes Radio. Last month, the company launched its own free mobile radio offering, Stations, in hopes of gaining new subscribers and further traction among mainstream consumers. Rdio is expected to announce its next CEO in the near future after previous chief Drew Larner stepped out of the role. Larner previously said that he's hopeful his successor will bring the company "an enormous user and subscription base."