SoundCloud joins the depressingly long list of companies in the tech industry laying off staff due to the economic downturn. Corresponding billboard and diversity, the company’s CEO, Michael Weissman, told employees in an email that it’s making “cuts” to its global team that will impact up to 20 percent of SoundCloud. Weissman said the move was necessary “given the challenging economic climate and headwinds in financial markets.” Additionally, the layoffs and prudent financial decisions the company has made recently appear to have put it on a path to sustained profitability.
A spokesman confirmed the job cuts to Billboard, adding that SoundCloud is supporting employees who are forced to leave the company. The online audio distribution platform last laid off a significant portion of its workforce — 40 percent overall — in 2017 when it was struggling financially. As billboard Remarks, SoundCloud has secured hundreds of millions of investments and has since announced its first profitable quarter of 2020.
In 2021, the company introduced a listener-based royalty model that could lead to better pay for indie artists as subscriber payments go directly to the artists they listen to. Warner Music Group recently adopted the model, becoming the first major label to do so. SoundCloud also bought an AI music curation company called Musiio in May to help users find hidden gems before they make it big. Musiio’s technology listens to songs, tags them, and then puts them into appropriate playlists.
Based on SoundCloud’s LinkedIn profile, it currently has 1,707 employees. If this number is correct, around 340 people will lose their jobs. Weissman said in his email to employees that the layoffs will affect employees in the US and UK, who will be notified in the coming days.
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https://www.engadget.com/soundcloud-is-laying-off-20-percent-of-its-workforce-121048907.html?src=rss SoundCloud is laying off 20 percent of its workforce