Last month Pandora announced plans to buy Rdio for $75 million. It’s a clear bid to compete directly with Spotify and Apple Music with a new a la carte music streaming service. Now it turns out the deal may be bad news for some Rdio employees.
A report from California’s Employment Development Department (EDD) spotted by VentureBeat reveals that Rdio plans to layoff 123 employees by the end of the year. That sounds pretty grim, but the reality may not be quite so bad. Pandora says it’s already offered jobs to about 100 former Rdio employees, mostly from the company’s engineering and licensing divisions. For some, it seems, the fate of their careers with either music streaming company seems uncertain.
It’s unclear exactly how many people worked for Rdio, but recent reports put the number somewhere between 140 and 180. That means 40 or more people could be out of a job as a result of the deal, though the specific details of how Pandora is handling the transition are still pretty murky.
Update: Rdio sent us a statement clarifying the situation.
As is required by law, Rdio issued WARN notices of layoffs to all 123 employees in the United States. Pandora has announced plans to hire approximately 100 of our employees after the bankruptcy court approves the transaction and the deal closes, which means the majority of Rdio employees will continue having jobs.