Napster Lays Off 10, Denies Sale Rumors

Napster said late Wednesday that it laid off ten managers worldwide as it combined its Napster subscription service with the Napster.com team. The company took great lengths in public statements to assure that these were not the beginning of a bigger round of layoffs as rumored earlier this month.

"Napster projects its headcount will actually increase over the coming year as our new Napster.com products enter the marketplace. Rumors of major or significant layoffs were misleading and greatly exaggerated, and efforts to sell the company are patently untrue," the company said in a statement. Napster also pointed to its 100 percent revenue growth and 500,000 subscribers as a sign of the company's health.