An article that has appeared on Digital Music News is talking about a dire situation at download service Napster. According to their 'sources' the company could be looking at exit strategies or a major restructure resulting in substantial redundancies.

A Napster representive keen to squash speculation was quoted saying "there are no imminent plans for significant layoffs" also denying any further intention to fold or sell the download company.

Expect more to become clear as the third quarter financial results will be webcast from napster.com on February 8th