Published
Wed, Aug 3, 2022, 22:30
- "Today's change positions SoundCloud for the long run and puts us on a path to sustained profitability," the CEO said in an internal email.
SoundCloud is laying off about 20 percent of its current workforce, according to an internal email acquired by Billboard.
The email, which has also been seen by Resident Advisor, notes that affected employees will be notified over the next few days. "Today's change positions SoundCloud for the long run and puts us on a path to sustained profitability," said CEO Michael Weissman, adding that "making changes that affect people is incredibly hard." However, he continued, "it is one that is necessary given the challenging economic climate and financial market headwinds."
Weissman explained that the changes are part of a wider initiative of "prudent" financial decisions at the Berlin-based company, which has made a number of moves in an effort to become profitable, including high-profile brand partnerships and collaborations with companies like Splice and Pandora. SoundCloud has also made efforts to introduce what they call a fairer royalty model based on users' relationships and listening histories with artists.
The company said it will hold an all-hands meeting later this week. The new layoffs mark the first major change since 40 percent of staff were let go in 2017 amid rumors that SoundCloud was running out of money. Despite the new layoffs, the company is said to be in better shape these days, as indicated by its first period of profits in early 2020.
"During this difficult time, we are focused on providing the support and resources to those transitioning," a SoundCloud representative told Billboard, "while reinforcing our commitment to executing our mission to lead what's next in music."