Tech News Summary:
- Audio streaming platform SoundCloud plans to lay off around 8% of its workforce in the US in a bid to become profitable in difficult global economic conditions. CEO Eliah Seton took responsibility for the difficult decision, but stressed that everyone affected would be given support.
- Last year, the platform cut 20% of its workforce, while in 2017 it released 40% of staff to restructure and improve financial resilience amid growing competition from rivals including Spotify and Apple Music.
- SoundCloud still remains one of the most popular audio streaming services globally, with over 76m registered users and a huge range of user-generated content such as DJ mixes and podcasts. The platform will actively seek new investment and work to retain users as it seeks to balance growth and profitability going forward.
In a surprising move, SoundCloud has announced a workforce reduction of 8%, causing a stir in the music streaming industry and among its users. The company, which was once considered one of the most promising startups in the music industry, attributed the layoffs to a move towards a more sustainable business model.
The layoffs reportedly affected the Berlin and New York offices of SoundCloud, which currently has around 420 employees. The company is also set to close its San Francisco and London offices, which will reportedly result in the loss of around 177 jobs.
According to reports, the move comes after a tumultuous few years for the company, during which it struggled to compete with other music streaming platforms such as Spotify and Apple Music. With the rise of these platforms, SoundCloud faced immense pressure to turn a profit, leading to a series of cost-cutting measures and restructuring.
However, despite the layoffs, SoundCloud has vowed to remain committed to independent artists, who have made the platform what it is today. In fact, the company has announced a new initiative, called SoundCloud Premier, which will offer independent artists the ability to monetize their tracks through the platform.
Despite the company’s efforts to reassure artists and fans alike, the layoff news has caused concern within the industry. Many are worried about SoundCloud’s future, as the company has long been a fixture in the indie music scene and has launched the careers of countless artists.
However, some industry observers have suggested that the move may ultimately be a good thing for the company. By focusing on a more sustainable business model, SoundCloud may be able to finally turn a profit, allowing it to continue to support independent artists in the long term.
Overall, the SoundCloud layoffs have left many wondering what the future holds for the music streaming platform. While the company’s commitment to independent artists remains strong, only time will tell whether these changes will ultimately benefit or harm the platform as a whole.