Imeem Confirms Layoffs

TechCrunch has confirmed an earlier report that music startup Imeem has laid off 20 employees, or 25 percent of its total staff.

“Given the current economic climate, we decided to be proactive in cutting costs—before we needed to—for the long-term benefit of the business,” a company spokesperson said in a statement.

The report said that the site isn’t doing all that well either: “Traffic appears to have peaked at 7 million unique visitors in July only to fall precipitously to 4.9 million uniques in September. This puts Imeem back to where it stood in April traffic-wise…international traffic has also taken a dip, although not as dramatically, with about 3 million uniques lost between July and August alone.”

Oh, how far the mighty have fallen—and how quickly. It throws into question the entire mobile music streaming market, which some are predicting will eventually displace the iPod (despite the fact that the music stops whenever you’re in the subway or another low-signal area).

AllFacebook Marketing Conference returns to San Francisco on June 28-29! Join us and get a how-to guide for marketing to Facebook’s 800 million users. A full agenda will be announced soon. Keep an eye on our event site for more information. Special early pricing is available for only $249 until this Wednesday, February 15, so register today.