According to Techcrunch, Rdio is laying off people – allegedly up to 35 people or 25% of the work force – “to improve its cost structure and ensure a scalable business model for the long-term”, as TC quotes a Rdio spokesperson.
In other words: Rdio’s investors are getting cold feet thinking about the burn rate. Which is quite understandable in a way.
Seeing that Spotify and Deezer seem to be putting a lot of investments in improving their service (see my recent posts on Deezer and Spotify) I have my doubts that now is a good point to start cutting investments – least of all in engineering, where reportedly “significant cuts” have been made.
Also, if the number of (paying) users are falling behind expectations, cutting your marketing budget isn’t going to help either.
On a more personal note, I really really don’t want Rdio to day, as I’ve just decided to move over from Spotify. In my opinion, the app is superior in many ways, as I’ve discussed recently.
So Rdio: PLEASE DON’T DIE!