SoundCloud Lays Off 8% of Workforce, Seeking Profitability

SoundCloud leaders told unit connected Tuesday (May 23) that location would beryllium an 8% simplification of its workforce. Stressing transparency, CEO Eliah Seton noted successful an all-hands gathering that nan layoffs are being made successful bid to thief nan institution move a profit. Leaders had group a Q4 target day for profitability, and sources wrong nan institution noted that these cuts get them there.

In nan meeting, Soundcloud activity besides noted that it would activity further investors for nan audio streaming service, sources astatine nan institution show Billboard.

The determination chiefly affects U.S.-based employees, a typical from SoundCloud confirmed.

The news was followed by an email obtained by Billboard, which Seton sent to nan full staff, noting that they would behaviour a “headcount reduction.”

“Everyone whose occupation is impacted by this alteration will person an invitation coming to meet pinch nan People Team and their manager. Meetings will return spot coming and tomorrow.” While Seton said successful nan memo that he “takes accountability for this decision… This is simply a challenging but basal determination to guarantee nan wellness of our business and get SoundCloud to profitability this year.”

The news of nan 8% unit simplification comes little than a twelvemonth aft nan institution conducted a erstwhile information of layoffs that affected up to 20% of unit successful August 2022. Then-SoundCloud CEO Michael Weissman told unit astir nan simplification successful a memo to nan world team, besides citing issues pinch profitability.

“Today’s alteration positions SoundCloud for nan agelong tally and puts america connected a way to sustained profitability,” Weissman added. “We person already begun to make prudent financial decisions crossed nan institution and that now extends to a simplification to our team.”

SoundCloud had antecedently announced a number of layoffs back successful 2017 — astatine that time, nan institution trim astir 40% of its workforce. Alex Ljung, who was past CEO, said those cuts were basal for nan institution to “control” its “independent future.”