Orchard CEO Resigns; Company Lays Off 20% of Staff

Authored by Mark Hefflinger on September 30, 2009 - 10:35am.

New York - The Orchard (NASD: ORCD), a digital distributor of independent music and video content, announced on Wednesday that president and CEO Greg Scholl has resigned, and additionally that the company has laid off 20% of its staff as part of a cost-cutting initiative. Scholl will remain on through the end of October, at which time Danny Stein -- an Orchard board member and currently also chairman and CEO of eMusic -- will replace him as interim CEO.

The company's board has also launched a search committee for a new permanent CEO.

The Orchard attributed the layoffs to "taking advantage of technology efficiencies and aligning costs with a slower-than-expected digital music market growth rate."

"Reducing staff is always a difficult decision, but in this case, the responsible one, and it better positions The Orchard for future growth and profitability," said outgoing CEO Scholl.

The Orchard said in a statement that Scholl has "accepted a new position to be announced in the coming weeks."

Founded in 1997, New York-based The Orchard provides digital distribution of music and video content to more than 730 digital storefronts and mobile carriers in 69 countries.

http://www.theorchard.com