Published
Fri, May 26, 2023, 19:34
- It's the first round of cuts since the platform laid off 20 percent of its staff last August.
Streaming service and distribution company SoundCloud has laid off 8 percent of its staff.
First reported by Billboard and confirmed to Resident Advisor by current and former employees, SoundCloud's new CEO Eliah Seton, who took over the position in March, decided to make cuts in the workforce as a way to improve profitability. It's the second round of axing the company has made in recent months—the first saw the platform lay off 20 percent of its staff last August.
A memo was sent to employees and seen by TechCrunch detailing Seton's decision. "This is a challenging but essential decision to ensure the health of our business and get SoundCloud to profitability this year," he wrote. "In doing so, we are securing the company’s future for the millions of artists who rely on us for their living and their self-expression, and the millions of fans who come to SoundCloud for the joy of music.
"It is critical to ensure that SoundCloud thrives in our mission to influence culture, be the preeminent home for artists and fans and lead what's next in music," he contiued. SoundCloud has not immediately responded to RA's request for comment.
Last month, the service revealed a new tool to help artists identify their biggest fans. It was the first step in its pivot toward fan-powered royalties, which includes partnerships with the likes of Merlin and Warner Music Group.