Musical company

Streaming company SoundCloud announces 20% layoffs

The SoundCloud streaming platform announced the cut of 20% of its workforce “given the difficult economic climate and headwinds in the financial markets”.

SoundCloud CEO Michael Weissman wrote in an email that affected employees would be notified over the next few days, Billboard reports.

“We will be making reductions to our global team that will impact up to 20% of our business,” Weissman said in the email.

“Making change that affects people is incredibly difficult. But it is necessary given the difficult economic climate and headwinds in financial markets,” he added.

The change positions SoundCloud for the long term and “puts us on a path to sustainable profitability,” Weissman said.

In 2017, SoundCloud laid off around 40% of its workforce for the company’s “long-term independent success”.

This time, the company said it “began to make prudent financial decisions across the business and that now extends to a reduction in our team.”

“We are focused on providing support and resources to those making the transition while reinforcing our commitment to executing on our mission to lead the future of music.”

SoundCloud announced its profitable first quarter of 2020.

Earlier this year, the company said its annual revenue rate was around $300 million.

Other music and content streaming platforms like Spotify and Netflix also announced job cuts.

–IANS

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