SoundCloud is the latest in a slew of tech companies to announce widespread layoffs in its global workforce, approximating a 20 percent reduction due to recent changes in the financial and economic landscape.
CEO Michael Weissman emailed employees on Wednesday (August 3) announcing the layoffs, which will impact the company's employees worldwide.
As Billboard reports, the email attributes the losses to "challenging economic climate and financial market headwinds," but that "[t]oday's change positions SoundCloud for the long run and puts us on a path to sustained profitability." Weissman added that they've "already begun to make prudent financial decisions across the company," which have now extended to a reduction of their team. The email also notes that US and UK employees affected by the layoffs will be notified "over the next few days."
A rep for SoundCloud confirmed in a statement that the company "announced an approximate 20 percent reduction of its global workforce due to a significant company transformation and the challenging economic financial environment."
The statement continued: "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."
This isn't the first time the streaming service has announced a number of layoffs; back in 2017, the company cut around 40 percent of its staff in an effort to ensure its "independent future."
In the five years since, SoundCloud has partnered with Pandora, Splice and Solid Foundation, alongside acquiring the artificial intelligence company Musiio, as reported by Variety.
Back in March of 2021, SoundCloud announced a "fan-powered" royalty sharing plan in which unlimited subscribers see their money distributed directly to the artist. Just over a year later, the company launched "Fan-Powered Friday," which saw the platform match 100 percent of the streaming revenue made by each artist.
CEO Michael Weissman emailed employees on Wednesday (August 3) announcing the layoffs, which will impact the company's employees worldwide.
As Billboard reports, the email attributes the losses to "challenging economic climate and financial market headwinds," but that "[t]oday's change positions SoundCloud for the long run and puts us on a path to sustained profitability." Weissman added that they've "already begun to make prudent financial decisions across the company," which have now extended to a reduction of their team. The email also notes that US and UK employees affected by the layoffs will be notified "over the next few days."
A rep for SoundCloud confirmed in a statement that the company "announced an approximate 20 percent reduction of its global workforce due to a significant company transformation and the challenging economic financial environment."
The statement continued: "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."
This isn't the first time the streaming service has announced a number of layoffs; back in 2017, the company cut around 40 percent of its staff in an effort to ensure its "independent future."
In the five years since, SoundCloud has partnered with Pandora, Splice and Solid Foundation, alongside acquiring the artificial intelligence company Musiio, as reported by Variety.
Back in March of 2021, SoundCloud announced a "fan-powered" royalty sharing plan in which unlimited subscribers see their money distributed directly to the artist. Just over a year later, the company launched "Fan-Powered Friday," which saw the platform match 100 percent of the streaming revenue made by each artist.
