In light of "a significant company transformation" and the current economic climate, SoundCloud will be cutting off about 20% of its global workforce.
Global Cutoffs
As reported first by Variety, CEO Michael Weissman sent an email to staff members informing them that the business is making cutbacks to its worldwide team that might affect up to 20% of SoundCloud.
Given the difficult economic environment and market challenges, according to Weissman, such action is necessary. The layoffs were confirmed to Billboard by the company's spokesperson, who also said that SoundCloud is offering support to employees who were cut off from their jobs.
"Today's change positions SoundCloud for the long run and puts us on a path to sustained profitability," Weisman said in the memo.
"We have already begun to make prudent financial decisions across the company and that now extends to a reduction to our team."
Back in 2017, SoundCloud made a series of layoffs, and at the time, the firm reduced its employment by about 40%. The company needed to make those cuts, according to Alex Ljung, the CEO at the time, to manage its "independent future."
SoundCloud started outlining changes to the business earlier this year in an effort to provide higher levels of artist-focused support by gradually increasing monetization and offering extra distribution tools for musicians.
The company also collaborated with Pandora and Splice, purchased the artificial intelligence firm Musiio, and formed a joint venture with Solid Foundation, a provider of management and creative services.
The business established a listener-based royalties model in 2021, which could result in higher compensation for independent musicians since customers' contributions go directly to the musicians they listen to.
The strategy was recently implemented by Warner Music Group, making it the first big label to do so, according to Engadget.
How Many Workers Will Be Laid Off?
According to SoundCloud's LinkedIn profile, 1,707 people work there right now. Around 340 individuals will lose their employment if that estimate is accurate.
Employees in the US and the UK will be advised of the layoffs in the coming days, Weissman stated in his email to staff members.
This article is owned by Tech Times
Written by Joaquin Victor Tacla
