SoundCloud change disk. In these difficult times, the platform of music streaming sees its growth slow down. To reduce its expenses in this particular economic context, the company announces a big wave of layoffs.
The company will part with 20% of its payroll. A decision that SoundCloud justifies by the global recession and the current macroeconomic climate. Affected employees will be notified in the coming days.
SoundCloud lays off 20% of its workforce
Hard blow for the SoundCloud teams. Michael Weissman, the company’s CEO, explained in an email sent to staff on Wednesday August 3 that the company was going to make workforce reductions on a global scale. This wave of layoffs concerns 20% of employees. Affected parties will be notified within a week. “ Making changes that affect people is particularly difficult. But it is necessary given the difficult economic climate and the headwinds in the financial markets “says Weissman to justify this decision.
” I want to personally thank those affected by this decision for their passion and contribution to SoundCloud and artist communities. You have all had an incredible impact on the music industry and on the lives of artists.s”, added the CEO With these cuts, the platform hopes to continue its important transformation and pave the way for “ sustainable profitability “.
A case far from isolated
This is not the first time that the company has announced such a wave of layoffs. In 2017, SoundCloud parted with 40% of its payroll as the company transformed its free model into a subscription service. It had then managed to gradually increase its turnover and obtain more than 200 million dollars from various investors, including 75 million from SiriusXM, the parent company of Pandora.
Despite an annual revenue rate of approximately $300 million in 2022, SoundCloud is suffering from the economic context as much as its competitors. Spotify, for example, has made several waves of layoffs this year and has announced its intention to slow down hiring. Same story with Pollen, the promoter of musical events who separated from about a third of his team in May. Other tech giants like Tesla, Twitter, Google, Apple and Meta are also planning hiring slowdowns or freezes.
Source : The Verge
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