After conducting previous layoffs last year, SoundCloud will be cutting off about 8% of its workforce to seek profitability in the company. This was announced during an all-hands meeting with the employees, led by CEO Eliah Seton.
Laying off 8% of the Workforce
SoundCloud Chief Executive Officer Elian Seton announced that it will be laying off 8% of its staff, which will impact around 40 employees of the company. According to a report from Variety, the recent layoffs follows a more critical round of job cuts back in August that reduced its headcount by 20%.
This move from the company will mainly affect employees based in the United States, which was confirmed by a representative from the company. Employees that will be impacted by this change will receive an invitation from the People Team, along with their manager, to attend meetings that will take place today and tomorrow.
By doing layoffs, SoundCloud will be able to secure the company's future for the millions of artists who rely on the platform for their living and self-expression, along with casual listeners who come for the joy of music. The company is in a "critical" condition of ensuring this effort in its mission to influence culture, be the home for artists and fans, and lead what is next in music.
Seeking Profitability
Seton stated that he takes full accountability for this decision, which he will carry every day. "Please know we do not take this action lightly - it is simply the hardest thing we can do in our business. This is a challenging but essential decision to ensure the health of our business and get SoundCloud to profitability this year," he added.
Engadget reported that the new headcount reduction is one of the company's strategies, hoping to be profitable by the fourth quarter of this year. Aside from this, executives from the company are reportedly courting and negotiating with new investors.
Seton described this news as "difficult to absorb," given that the company takes care of sensitivity to the mental health of their employees. SoundCloud encouraged their employees to visit their Opus Page for Wellness and Wellbeing or People Team Partner, as an effort to offer extensive resources for any employee that needs additional support during this time.
Previous Layoffs
As per Billboard, this news from SoundCloud comes less than a year after the company conducted a previous round of job cuts in August 2022, which affected up to 20% of its employees. Former CEO Michael Weissman also stated that these changes will put the company in the long run, as it put them on a path to a much more sustained profitability.
We have seen a pattern from the company since last year as SoundCloud has been slowly reducing staff for some time. Aside from the latest layoffs and the previous one last year, the company also slashed its workforce by 40% in 2017.
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