According to numerous sources, SoundCloud has laid off 8% of its workers. In addition, the corporation laid off 20% of its workers last August.
In a statement to colleagues viewed by Variety, CEO Eliah Seton claimed SoundCloud is decreasing staffing to become profitable this year. “This is a difficult but necessary decision to ensure our business’s health and get SoundCloud profitable this year.
“In doing so, we are securing the company’s future for the millions of artists who rely on us for their living and self-expression, and the millions of fans who come to SoundCloud for the joy of music,” the CEO stated in the memo.
“It is crucial to ensure that SoundCloud thrives in our mission to influence culture, be the preeminent home for artists and fans, and lead what’s next in music.”
After replacing Michael Weissman as CEO in March, Seton’s first big move was this. Merlin and Warner Music Group power SoundCloud’s fan-driven royalty scheme. The project distributes ad and subscription profits to artists consumers listened to.
It has a more detailed royalty program than other streaming providers. The startup launched a TikTok-like vertical feed for music discovery earlier this year. In addition, SoundCloud developed a fan-engagement feature last month, enabling musicians to learn more and interact with fans.
SoundCloud says it has 130 million “engaged fans.” It hosts more than 320 million tracks from 40 million creators.
Music streaming firms are struggling to become profitable. Last year, Tencent-backed Indian app Gaana became a subscription service. This month, Bytedance’s Resso app, used in India, Brazil, and Indonesia, also fell behind a paywall.