https://www.theverge.com/2022/8/4/23292362/soundcloud-firing-20-percent-workforce-layoffs

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Filed under:

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SoundCloud is firing 20 percent of its global workforce

SoundCloud's CEO said the move puts it on a path to 'sustained
profitability'

By Jasmine Hicks Aug 4, 2022, 4:54pm EDT

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In this photo illustration the SoundCloud logo seen... SoundCloud's
CEO sent out a memo on Wednesday Photo Illustration by Rafael
Henrique/SOPA Images/LightRocket via Getty Images

Streaming company SoundCloud is cutting about 20 percent of its
global workforce. Billboard reported on August 3rd that SoundCloud
CEO Michael Weissman told the staff in a company memo that the change
is mostly due to the current economic climate. Employees affected
would be notified over the next several days.

"Today's change positions SoundCloud for the long run and puts us on
a path to sustained profitability," Weissman wrote in the memo. "We
have already begun to make prudent financial decisions across the
company and that now extends to a reduction to our team." In a
statement to Billboard, a SoundCloud representative confirmed the
news, and said: "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."

In 2017, SoundCloud fired about 40 percent of its workforce, citing
it as necessary for the company's "long-term, independent success."

In March 2021, SoundCloud implemented a new payout system that
allocates funds paid in by subscribers or advertisers directly to the
artists fans choose to stream, instead of pooling subscription and
advertising money together, then dividing it based on which artists
contributed the most streams, like its competitors Spotify and Apple
Music. In July, they adopted a licensing deal with Warner Music Group
to share the same royalties system.

SoundCloud is just one of many tech companies to recently announce
either layoffs (Tesla, Substack, Coinbase, and OpenSea, to name a
few) or adjustments in hiring plans. In June, Spotify said in a
company memo that it would be reducing its hiring by 25 percent and
"evaluating" company "headcount growth." Other companies like Google,
Twitter, and Meta have also recently announced hiring slowdowns and
freezes, while Apple reportedly intends to slow down hiring in 2023.

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