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DistroKid, which claims to be the world's largest independent digital music distributor, plans to let go 37 staffers—a fourth of its workforce—on November 2nd, the company's official union body has warned.

DistroKid Union, which officially launched early this year, revealed the expected layoffs in a recent Instagram post. The 37 staffers, who form 50 percent of the company's unionised personnel, are currently on administrative leave, the union said.

The move impacts the "entire" customer support team, which will be replaced by "overseas labour," the statement added, also noting that no non-union employees are affected. Those placed on administrative leave were told their salaries would be spent on "marketing," DistroKid Union continued. (Speaking to two employees, Billboard confirmed those reports.)

DistroKid, which helps artists to upload and circulate their music to streaming platforms and online stores, provided the following statement to Resident Advisor:

"DistroKid is committed to continuously enhancing support for independent artists around the world by expanding to 24/7 customer service with faster response times. To achieve this, we have identified solutions that allow us to deliver more scalable and exceptional service, ensuring that artists around the globe receive the high-quality support they deserve. This includes considering difficult decisions that may affect valued team members as we continue our focus on providing the best artist experience possible."

We'll continue reporting on this story as it unfolds.

Article Originally Found At: www.ra.co