Report: SoundCloud Is Only Funded for 50 More Days
Published Jul 13, 2017It might be a good idea to back up any music you've shared on SoundCloud as the writing could be on the wall for the long-running streaming service. Following a massive round of layoffs last week, reports indicate the company could be doomed.
TechCrunch has published a lengthy piece suggesting plenty of internal strife at the company after SoundCloud laid off 173 of its 420 employees on July 6.
The layoffs were said to ensure the "independent future" of SoundCloud, but according to a source at the company, they've only been funded until Q4 of this year. That starts in 50 days.
When presented with TechCrunch's reports, an official representative of SoundCloud said they are "fully funded into Q4." They added that they're in talks with potential investors.
Naturally, the massive layoffs have also caused chaos within the company's ranks. One source said "the morale is really low," while another added, "I don't believe that people will stay. The good people at SoundCloud will leave. Eric [Wahlforss] said something about the SoundCloud 'family,' and there were laughs. You just fired 173 people of the family, how the fuck are you going to talk about family?"
The company has had trouble monetizing its collection of music for some 10 years, though they've managed to avoid being acquired by both Spotify and Google. While CEOs suggest they've got plans to keep the company afloat, one employee concluded their discussion with TechCrunch by saying, "There's no strategy."
UPDATE (7/13, 4 p.m. EDT): SoundCloud has released a statement refuting the claims made in the TechCrunch article. Speaking to Resident Advisor, they noted "a number of inaccuracies" stemming from "a misinterpretation of information by one or two laid off employees."
"To clarify, SoundCloud is fully funded into the fourth quarter," the spokesperson added. "We continue to be confident the changes made last week put us on our path to profitability and ensure SoundCloud's long-term viability."