“Napster has just completed a round of layoffs, according to sources within the organization. The sources pointed to a 10 percent workforce reduction, focused within the programming and marketing divisions. Employees who were included in the downsizing were told to exit immediately, and were not given prior warning, per the reports. While the mood inside Napster is predictably grim following the events, top management has reportedly emphasized that the layoffs were not indicative of any larger trend, and dismissed any discussions of a future sale of liquidation,” Digital Music News reports.
Full article here.
The possibility of the Napster layoffs was first reported by Digital Music News on January 17th, based upon information from sources inside Napster. At that time, a Napster official denied the allegations, noting that there were “no imminent plans for significant layoffs.” The next day, Napster issued a warmed-over press release proclaiming their rather weak subscriber numbers and quoting Napster CEO Chris Gorog, as being “extremely excited about the future of Napster.” Why Gorog is excited about bankruptcy proceedings is beyond us. Perhaps he just has an affinity for finality?
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Related articles:
EMI Music Chairman: Music subscription services like Napster and Rhapsody haven’t beeen huge – January 23, 2006
Napster CEO Gorog: ‘we are extremely excited about the future’ – January 18, 2006
Report: Napster executives do the math, consider selling or shutting down, layoffs imminent – January 16, 2006
Napster CEO Gorog: Apple iPod is a ‘villain’ – December 12, 2005
More blood on Apple iPod’s Click Wheel: Thomson gives up on MP3 player, CE markets – December 12, 2005
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More blood on Apple iPod’s Click Wheel: Rio is dead – August 26, 2005
Napster President: Apple CEO Steve Jobs has ‘tricked people into buying a hardware trap’ – August 22, 2005
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Napster: the only thing missing is the sock puppet – August 04, 2005
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SmartMoney: Napster is a snooze, gushing money and renting music is un-American anyway – July 06, 2005
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Napster CEO Gorog: Steve Jobs ‘must be pretty frightened’ of Napster To Go – March 14, 2005
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Napster’s math does not add up – February 28, 2005
Users thwart Napster To Go’s copy protection; do the music labels realize the piracy potential? – February 15, 2005
Napster CEO Gorog: ‘it’s stupid to buy an iPod’ – February 10, 2005
$10,000 to fill an iPod? Napster’s going to end up with egg on their face – February 04, 2005
Why ‘Napster To Go’ will flop – February 03, 2005
Napster CEO: We’re ‘the biggest brand in digital music, much more exciting than Apple’s iTunes’ – February 03, 2005
The de facto standard for legal digital online music files: Apple’s protected MPEG-4 Audio (.m4p) – December 15, 2004
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Napster 2.0 posts US$15 million relaunch loss – February 08, 2004
Napster. The long goodbye
“Why Gorog is excited about bankruptcy proceedings is beyond us. Perhaps he just has an affinity for finality?”
I’ve been laughing for hours! This is one for the memory banks for later use.
Re: Black Guy
JINX!
Will the Napster name be bought by…
M$
Real
we’ll see
Roxio, we hardly knew ye.
Gorog is just trying to keep it afloat long enough hoping that M$ will come along and bail them out. I don’t see that happening though. No sense in throwing good money after bad.
The Gorog’s of this world wouldn’t be fazed by company bankrupcy. They have their golden parachutes and will land on another unsuspecting company foolish enough to make them executives. I just feel sorry for the employees and customers left holding the bag.
MW: expected. The downfall of Napster is to be expected.
Napster. Soon to be entirely forgotten.
This is like watching a terminal coma patient slowly withering away.
“Why Gorog is excited about bankruptcy proceedings?” I think Gorog might just be excited to get out of his depressing office.
What’s next? An advertising and distribution deal with Pan Am, Webvan, and Acorn Computers?
Buh Bye….
Hmmmmmmm, so what happens to everyone’s music if they have a Napster account? Does it just stop working? That’d suck, but then again Napster suck!
> Employees who were included in the downsizing were told to
> exit immediately, and were not given prior warning
Excuse me? Is this normal in the US?
Even Bangladesh has more employee protection…
hahaha lopped off.
“Gorog is just trying to keep it afloat long enough hoping that M$ will come along and bail them out. I don’t see that happening though. No sense in throwing good money after bad.”
Why not, Microsoft has been throwing their money away for years.
(See WebTV, VISTA aka Longhorn development, media center PC’s)
Take a nap, a permanent one.
“Excuse me? Is this normal in the US?
Even Bangladesh has more employee protection…” – Halix
You can terminate employees effective immediately as long as you follow the proper procedure such as giving a severance package and so on. What you can’t do is just toss the employees on the street with nothing.
That said, I think Napster terminated the wrong employees. Marketing and programming people are needed to attract people to use Napster service. What they should have done is terminating 10% from the brain-dead executives. Gorog included.
“Why Gorog is excited about bankruptcy proceedings is beyond us. Perhaps he just has an affinity for finality?”
This had me ROLLIN’!!!!
No doubt Gorog is excited about the bankruptcy because his golden parachute will open moments before that, he can walk away with his guaranteed millions and start raping another company.
How many dead bugs the the windshield of AppleiTunes bus??
ITS OVER CRAPSTER! YOU ARE D-A-I-D …. DAID!
Does this mean that as soon as their subscriptions expire they will turn around and buy iTunes songs??? Hmmmmmmmmm
Hooty
R.I.P. Napster.
This is why you NEVER EVER put all your business into one product or service.
Bad business move, predictable outcome im affraid.
Apparently you have your priorities misplaced when you rejoice over the death of a company and the now out of work employees.
bye bye punk.
look i feel for the employees, but not for Gorog. He can take his cheap polyester suit and hit the road.