Napster starts layoffs

Filed in archive Companies on January 30, 2006

napster admitted to laying off 10 people, about 7% of its 153 person workforce, in response to earlier rumors about company troubles, The company tried to spin it, referring to "redundancies formed when the company consolidated operations for its subscription service"

The company said "Efforts to sell the company are patently untrue. We suggest that 100 percent year-over-year revenue growth, 500,000 subscribers and the No. 2 market share position in the industry should speak for itself in terms of the company's health and prospects."

Yeah, right. If business were so rosy, they would have found room for said 'redundancies '.