As news of layoffs continues to spread globally, SoundCloud has announced that it will be joining the masses. The audio distribution and music sharing platform plans to reduce its global workforce by approximately 20%. This decision was made in light of a significant company transformation and the challenging economic and financial environment.
CEO’s Message to Employees
SoundCloud CEO Michael Weissman emailed employees, informing them that U.S. and U.K. staff will be notified if they’re impacted over the next few days. In his email, Weissman expressed gratitude towards those who will be leaving the company, acknowledging their passion and contributions to SoundCloud and the artist communities they serve.
Background on SoundCloud’s Previous Layoffs
Just two weeks prior to this announcement, Weissman shared a post from the company announcing two executive hires: Jessica Rivera and Maurice Slade. This news came after SoundCloud inked its first major label partnership with Warner Music Group in July for its Fan-Powered Royalties initiative. In May, the company acquired AI music curation company Musiio.
SoundCloud’s Financials
Since the last time SoundCloud cut its workforce by 40% in 2017, the company has been focusing on profitable growth. With an annual revenue run rate around $300 million, this move is likely a strategic decision to ensure the company’s future success. Despite these layoffs, SoundCloud remains committed to executing its mission of leading what’s next in music.
Impact on the Music Industry
The impact of this decision will not only affect employees but also the music industry as a whole. With the rise of streaming services and changing market conditions, companies are being forced to adapt to stay competitive. SoundCloud’s commitment to its mission remains unchanged, even amidst these challenging times.
Key Takeaways
- SoundCloud plans to reduce its global workforce by approximately 20%.
- The decision was made due to a significant company transformation and the challenging economic and financial environment.
- CEO Michael Weissman has expressed gratitude towards employees who will be leaving the company, acknowledging their contributions to SoundCloud and the artist communities they serve.
- This move is likely a strategic decision to ensure the company’s future success.
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