Bandcamp dismisses 50% of its staff amid Epic Games mass layoffs
Other half of workforce will stay on as music platform is sold to licensing company Songtradr
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Half of Bandcamp's employees are among those affected by the mass layoffs occurring at Fortnite creator Epic Games.
Kotaku reports that those who are being dismissed from the music platform will receive six months' severance pay, although the Bandcamp United union is negotiating better terms.
Songtradr spokesperson Lindsay Nahmiache told SFGate that 60 of Bandcamp's 118 employees received offers to continue working, while 58 did not.
The news comes as Epic finalises the sale of Bandcamp to Songtradr, a music licensing company, which was announced when the Unreal Engine firm first disclosed the layoffs.
In September, Epic Games said it would be laying off 830 people, or approximately 16% of its total workforce. Fall Guys studio Mediatonic is also known to be affected by these job cuts.
In addition to selling Bandcamp, which was acquired in March 2022, Epic is also divesting 'kidtech' specialist SuperAwesome, which it acquired in 2020.
Songtradr offered a statement on why it's not acquiring Bandcamp and its entire team.
"Over the past few years the operating costs of Bandcamp have significantly increased," the company wrote in a statement. "It required some adjustments to ensure a sustainable and healthy company that can serve its community of artists and fans.
"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."