Rdio Laying Off Staff, “Huge Percentage Of Rdio Is Gone and Me With Them”

TechCrunch is reporting layoffs at Rdio and has received confirmation from a spokesperson. Estimates are as high as 35 people which apparently works out to somewhere between a fifth and a third of the workplace. That's a big cut and given that engineering is said to have been strongly affected, an incredibly bad sign for the future of Rdio as a competitive endeavor.

Ingrid Lunden, writing for TechCrunch, reported the layoffs this afternoon.

She quotes a spokesperson for Rdio:

"Rdio confirmed making across-the-board workforce reductions today to improve its cost structure and ensure a scalable business model for the long-term."

That's all they're saying for the moment but the cuts in engineering are described as "significant." Insiders are talking up to 35 people, a huge chunk of staff, especially given the current value of engineers.

One former engineering employee tweeted:

Another tweeted the news in an interesting manner:

At least the engineers can get work immediately if they wish. Still a tough scene on the day of layoffs.

More:

• Rdio Launches Free Mobile Streaming in US, Canada, Australia powered by The Echo Nest
• Cumulus Takes Equity Stake In Rdio, Will Launch New Free Music Service
• Rdio Partners With Live Nation

Hypebot Senior Contributor Clyde Smith (@fluxresearch/@crowdfundingm) also blogs at Flux Research and Crowdfunding For Musicians. To suggest topics for Hypebot, contact: clyde(at)fluxresearch(dot)com.