CD Baby Lays Off Members of Its Creator Services Team

December 11, 2024 E Jazz Reporter

Music

News of the CD Baby layoffs comes just a month after its competitor, Distrokid, placed 37 union employees on “administrative leave.”

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CD Baby, one of the biggest do-it-yourself distribution services in the industry, laid off members of its creator services team last week, a source close to the matter tells Billboard. Responsible for providing customer support, this team is now being “consolidat[ed]” in an effort to “re-allocat[e] resources” within the company, says a spokesperson for CD Baby.

News of CD Baby’s employment cuts echo the recent news that Distrokid was placing 37 union employees responsible for quality control and customer service on “administrative leave.” These roles were to be outsourced to contractors, located internationally. Its other competitor, TuneCore, was recently sued by UMG in a landmark $500 million lawsuit for allegedly allowing its users to distribute songs that clearly infringed on UMG’s copyrights to streaming services.

Over the last year or so, a number of music businesses, even beyond the realm of DIY distribution, have restructured their companies, leaving hundreds, if not thousands, of music professionals on the search for new jobs. This year alone, UMG completely restructured its recorded music division, laying off hundreds of employees. WMG followed suit with similar restructuring of Atlantic Music Group and layoffs. WMG also shut down LEVEL, one of its distributors. In late 2023, BMG laid off “dozens” in its film/tv, theatrical and international marketing departments.

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A spokesperson for CD Baby replied to Billboard’s request for comment, saying: “In an effort to support the changing needs of artists and the industry, we are consolidating certain CD Baby functions within Downtown and re-allocating resources towards long-term growth opportunities. Unfortunately, this has resulted in the elimination of certain roles and positions at CD Baby. We want to recognize the achievements of these staff members during their tenure with CD Baby. Their dedication to innovation helped CD Baby to become a globally recognized leader in the distribution space. Going forward, we will stay committed to this music-first and pioneering approach, building the services that benefit artists today and in the future.”

CD Baby has helped independent musicians get their music out since its founding in 1998. In the intervening years, it has become one of the pioneers and leaders of the DIY distributor market, democratizing the music business and opening it up to musicians of all backgrounds. CD Baby, and the other services owned by its parent company AVL Digital Group, sold to Downtown Music Holdings in 2021 for a reported $200 million dollars. At the time, CD Baby’s then-CEO Tracy Maddux said of the deal: “This transaction will allow us to take the services we offer the independent music community to the next level.”

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