SoundCloud Announces Layoffs, 20% Of Work Force To Be Impacted

"Prudent financial decisions" force their hand...

SoundCloud plans to lay-off 20% of its global work force.

The music streaming company was founded in 2007, and came to define music consumption for an era of music fans. The rise of Spotify and Apple Music soaked up much of the platform’s audience, but it still maintains around 175 million listeners.

Sadly, it seems that a shift in the financial outlook has caused job losses at SoundCloud. As Billboard notes, 20% of global staff now face lay-offs, with CEO Michael Weissman sharing a full internal statement to employees.

“Today’s change positions SoundCloud for the long run and puts us on a path to sustained profitability,” Weissman writes. “We have already begun to make prudent financial decisions across the company and that now extends to a reduction to our team.”

The move comes 12 months after the launch of a “fan-powered” royalty system, with SoundCloud sharing more details with Pitchfork: “During this difficult time, we are focused on providing the support and resources to those transitioning while reinforcing our commitment to executing our mission to lead what’s next in music…”

Clarity for SoundCloud workers should come imminently; Weissman’s email notes that SoundCloud employees in the United States and United Kingdom “will be notified over the next few days” on the status of roles with the company.

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