Digital distributors the Orchard has laid off employees just three weeks after its merger with the Independent Online Distribution Alliance (IODA). According sources with knowledge of the layoffs, ten people from the IODA side of the business were let go Monday. One source said more layoffs are expected in about a month.

In a statement given to Billboard.biz, the Orchard explained Monday's layoffs were made "to ensure that The Orchard is efficiently structured to serve the needs of our expanded client base and won't have any negative impact to our clients."

Orchard, IODA Merging; Sony Music To Invest In New Company: Sources

New York-based the Orchard merged with San Francisco-based IODA in the first week of March. Sony Music, already a 51% owner of IODA, will own at least 50% of the merged company, sources told Billboard.biz before the merger was announced.

The combined company assumes the Orchard name. The Orchard CEO Brad Navin is the CEO of the combined company. Kevin Arnold, founder and CEO of IODA, is a board member of the combined company and will work on strategic projects for Sony, according to the Orchard's press release on the deal.