Rhapsody cuts 15 % of staff; CEO resigns

Music streaming service Rhapsody on Monday laid off 15 % of its staff and said its president, Jon Irwin, is stepping down. The company also announced investment firm Columbus Nova Technology Partners has become a major shareholder.

Music streaming service Rhapsody on Monday laid off 15 % of its staff and said its president, Jon Irwin, is stepping down. The company also announced investment firm Columbus Nova Technology Partners has become a major shareholder.

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The company also said it had hired Ethan Rudin, a former Starbucks strategy executive, as Rhapsody's chief financial officer, replacing Adi Dehejia.

While it looks for a new CEO, the company will be run by a committee of Rhapsody executives.

Activity in the digital music space has been frenetic. On Monday, streaming service Rdio announced that radio station owner heavyweight Cumulus Media Inc. had taken a minority stake.

Pandora Media Inc. also said Monday it would raise up to $279.4 million in a share offering, days after announcing a new CEO, Brian McAndrews.