As the owner, Epic Games has sold Bandcamp to Songtradr and approximately 50% of Bandcamp's workforce was laid soon after.
Reports state that Epic Games had indicated that not all employees will receive Songtradr offers. The laid-off employees will receive severance.
Songtradr had confirmed the terminations because its "current financials" supposedly needed "some adjustments."
According to Songtradr, Bandcamp's operating costs had increased to the point of being unsustainable.
It decided to provide offers to 50% of the employees after a "comprehensive evaluation" of the importance of specific roles in business operations and other factors.
Despite the layoffs, Songtradr is planning to retain existing Bandcamp services like artist-first revenue share, Bandcamp Fridays, and Bandcamp Daily.
Fortnite developer Epic Games bought Bandcamp in March 2022 and announced in September 2023 the termination of 16% or 830 people who were staffed.
The staff expressed their shock and disappointment at the 50% layoffs on social media. Much of the terminated staff belonged to the editorial team.