Facing stiff competition with more on the way, audio streaming service and Cumulus partner Rdio is undergoing a reduction in force designed to better position itself for the long term.
The company stated, “Rdio confirmed making across-the-board workforce reductions today to improve its cost structure and ensure a scalable business model for the long-term.”
Rdio, owned and operated by Pulser Media, is in partnership with Cumulus Media, which provides content and promotion and sales infrastructure for the service in exchange for an equity stake.
Numerous observers speculated on the company’s troubles, not the least of which is a lengthy list of services that are either direct competitors or close enough to make share maintenance a difficult proposition.
Nonetheless, the company told TechCrunch reporter Ingrid Lunden that things are going along just fine. It told here it has tripled its total of new users since the end of 2012, which 90% of its subscribers are forking over $9.99/month for its Rdio Unlimited offering, which makes the service available on mobile devices as well as on the internet, and that partnerships with Facebook, Twitter and Shazam are contributing to the service’s growth.
Still, the cuts are said to be severe, amounting to anywhere between 20%-33% of its existing workforce.
