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Bandcamp Lays Off Half Of Its Staff After Being Bought By Songtradr

The online music platform that is known for championing independent artists and labels, Bandcamp, has laid off half of its staff after the company was bought out by Songtradr, a music licensing startup. 

Songtradr wrote a statement confirming the purchase of Bandcamp from Epic Games last month: 

“This acquisition will help Bandcamp continue to grow within a music-first company and enable Songtradr to expand its capabilities to support the artist community.”

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Songtradr also announced the layoffs with the purchase of Bandcamp: “Over the past few years the operating costs of Bandcamp have significantly increased … After a comprehensive evaluation, including the importance of roles for smooth business operations and pre-existing functions at Songtradr, 50% of Bandcamp employees have accepted offers to join Songtradr.”

What this means is the remaining 50% of employees will not have their contracts renewed. 

Bandcamp was founded in 2007, and has been known as an online music store and community made up of more than five million artists and labels. The platform was acquired by Epic Games in March of last year. 

Bandcamp is also known for its support of underground unknown musicians, giving them a chance to reach more listeners and build a support network. Their editorial platform, Bandcamp Daily, also promotes music from “outside the mainstream.” In the entirety of the company’s lifespan, customers have spent $1.2 billion with an average of 82% of revenue going to artists and/or labels. 

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Bandcamp United, the company’s union, shared a statement online regarding the “heartbreaking” layoffs. 

“We love our jobs, the platform we’ve built, and the Bandcamp community. We’re glad we have our union – co-workers who have each other’s backs. We’ll be moving together to decide what our next steps are. On Wednesday we return to the bargaining table with Epic Games, and we’ll keep you updated.”

The union has also been trying to gain recognition from Songtradr. This month they also posted an online petition so they could begin negotiations with the new buyers to offer jobs to existing staff members. Two weeks before, Songtradr told the union they would not be extending job offers to all of Bandcamp’s staff. 

Songtradr was originally founded in 2014, and is a platform known for allowing musicians and publishers to upload music that can then be licensed by commercial spaces like brands and content creators. 

On the day that Songtradr purchased Bandcamp, Epic Games also announced they were laying off 16% of their global staff (around 830 individuals).

goldman sachs

Goldman Sachs Gearing Up To Lay Off Up To 3,200 Employees This Week 

According to reports from an individual involved in Goldman Sachs, the company will be laying off up to 3,200 employees this week as a means of saving on costs. 

The source who spoke with CNN stated that more than a third of the projected layoffs will come from the firm’s trading and banking units. These cuts are a result of uncertain economic and market conditions, as Goldman Sachs has recently been feeling the impacts of a decrease in global dealmaking. Many companies are leaning away from mergers and raised capital with the firm. 

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As reported by Bloomberg, hiring for roles in other departments will continue into the new year, and a new class of analysts are also expected to start working for the firm later this year. 

At the end of the third quarter Goldman Sachs reported having around 49,100 employees after adding thousands of positions during their recovery from the pandemic; which many financial markets have also done. 

Overall, the Federal Reserve and other major banking firms have begun to raise their borrowing costs as a means of combating inflation rates throughout the nation. 

Many companies are working on saving money by any means necessary to prepare for a possible recession that would occur as a result of rising interest rates. The rate of mergers and acquisitions have overall been on the decline as well. 

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Goldman Sachs is one of the most well known firms that’s involved in these mergers and acquisitions as well. So with the recent decline in transactional activity, the firm experienced a 12% drop in revenue in the third quarter of 2022 when compared to one year ago. 

Investment banking revenue overall has decreased by 57% yearly, according to reports

This past October Goldman Sachs announced part of its plan to streamline operations by combining their trading and investment banking divisions, as well as combining its digital consumer bank, known as Marcus, with its wealth management sector. 

Reports indicate that shares of Goldman Sachs were up less than 1% in premarket trading as of this week. 

Goldman Sachs isn’t the only massive company planning on implementing layoffs in their 2023 plans. Amazon stated earlier this month that they plan on laying off more than 18,000 employees while Morgan Stanely have already begun layoffs in the new year.

Carvana

Carvana Lays Off 2,500 Employees As It Looks To “Align Staffing With Sales Volumes”

Online automotive retailer Carvana Co. has announced it’s letting go of 2,500 employees — nearly 12% of its workforce — as they look to “better align staffing and expense levels with sales volumes.” Additionally, executives will forgo their pay for the remainder of the year in order to help pay the severances for departing employees.

In a filing with the Securities and Exchange Commission, the Tempe, Arizona-based company referred to the moves as “right-sizing initiatives,” while noting most of the jobs expected to be terminated over the next several weeks are in Ohio and other logistical hubs.

The announcement of the layoffs came the same morning Carvana announced their acquisition of Adesa U.S.’s used vehicle auction — which totals around 56 sites and 6.5 million square feet of buildings — for $2.2 billion.

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“We believe these decisions, while extremely difficult, will result in Carvana restoring a better balance between its sales volumes and staffing levels and facilitate Carvana returning to efficient growth on its mission to change the way people buy and sell cars,” the filing stated.

CEO Ernie Garcia expanded upon the targeting of the company’s operational employees in an email. “I wish the burden were shared more evenly across the company, but our operations teams have grown the most over the last several months and are therefore furthest out of balance with the sales we are seeing,” Garcia — who possesses a net worth of $1.4 billion — said.

Carvana assured they’re looking to provide assistance, resources, and support for those laid off, which includes recruiting and resume assistance, extended healthcare coverage, and continued participation in company programs.

The move has received backlash, with some employees stating on social media they were fired over Zoom, a practice other companies have adopted during the pandemic times. A Carvana spokesperson explained “less than half” of the layoffs were done over Zoom, and they conducted as many in-person conversations as they could.

In the first quarter of 2022, Carvana saw a revenue of $3.497 billion, a year-over-year increase of 56%. The company also sold 105,185 units, a year-over-year increase of 14%. Beyond those numbers reveal a bleaker outlook for Carvana as they posted their first-ever sales decline of $506 million despite a time when car demand and sales are at record highs.

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Carvana, known for its hard-to-miss “car vending machines,” sells only used cars online and delivers them to buyers. As Jalopnik explained, the company’s first quarter collapse could be chalked up to Carvana purchasing a large quantity of used cars in anticipation for rising demand.

However, it’s bet to capitalize on the vehicle surge didn’t pay off when demand swiftly fell due to “rising interest rates, rising fuel prices and macroeconomic uncertainty.” In April, the consumer price index (CPI) for new cars rose 1.1%, while used cars and trucks fell -0.4%.

Supply chain issues have also contributed to the overall downturn of not just Carvana, but countless other companies in multiple industries. Carvana has also seen their stock fallen mightily, as they’re down -256.51 (-86.03%) throughout the last six months. At the time of the news Tuesday, shares fell 5.4% to $36.68.

Disney

Disney To Lay Off 32,000 Workers As Theme Parks Continue To Struggle During Pandemic 

The Walt Disney Corporation announced this week that they would be increasing the number of employee layoffs projected for the beginning of 2021 by 4,000. Most of these layoffs are occurring within the theme parks themselves, as most parks throughout the nation are greatly struggling to keep up with the economic loss the Covid-19 pandemic has brought on. 

This increase in layoffs brings Disney’s projected total of employment layoffs to 32,000. The company filed with the SEC this week revealing the extended layoff plans, which will largely take place in Disney Parks, Experiences, and Product sectors. Back in September the entertainment giant announced it would be reducing its workforce by 28,000 employees due to the pandemic. 

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Overall Disney has estimated that the net economic impact that the Covid-19 pandemic has had on its “full-year segment operating income” was approximately $7.4 billion in losses. The Disney Parks, Experiences, and Products sector accounts for $6.9 billion of those losses as well due to a complete lack in revenue and profit. 

Downtown Disney in California recently reopened some of its shopping and dining facilities, with a slew of Covid-19 restrictions, as a means of making up for some of the loss, however, it’s not nearly enough to make back the billions. 

On October 3rd Disney had approximately 203,000 employees throughout the nation; around 155,000 of those workers were in the Disney Parks, Experiences and Products sectors. The global workforce was made up of around 80% full-time employees and 20% part-time, meaning a lot of these individuals’ livelihoods have been completely uprooted and destroyed from this pandemic. 

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Disney’s merchandise licensing business has also taken a hit amid the pandemic due to a multitude of studio entertainment delays. Theatrical releases of certain films have been cancelled and thus the marketing sectors for those films, shows, and characters have been thrown off their projected schedules as well. This has led to stock piles upon stockpiles of merchandise just sitting in warehouses; like many businesses have seen happen with their product throughout this pandemic. 

Advertising sales at the companies media networks have struggled as well, and direct-to-consumer and international segments are also unable to operate to their fullest extent due to a lack of business. Since March 2020, like most entertainment companies have seen, there has been a significant decline in production and availability of content for Disney. 

Production of most film and television content has been suspended indefinitely until the pandemic is brought under greater control in the US. Disney has claimed that some film and television productions have resumed operations with dozens of restrictions and health and safety measures in place.