SoundCloud have announced that 20 per cent of its workforce will be laid off as part of a series of “prudent financial decisions”.
The music platform had previously let around 40 per cent of their workforce go in 2017 to, then-CEO Alex Ljung said, “control” the company’s “independent future”.
In a new memo sent to staff and read by Billboard, new boss Michael Weissman said: “We will be making reductions to our global team that will impact up to 20 per cent of our company.
“Making changes that affect people is incredibly hard. But it is one that is necessary given the challenging economic climate and financial market headwinds.”
Weissman added: “Today’s change positions SoundCloud for the long run and puts us on a path to sustained profitability. We have already begun to make prudent financial decisions across the company and that now extends to a reduction to our team.”
A SoundCloud representative added in a statement that the cuts were due to “a significant company transformation and the challenging economic and financial environment,” adding: “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.”
Last year, SoundCloud announced details of a new fan-powered royalty system, where fans could have a greater say in where the money for their subscription to the service went.
“Many in the industry have wanted this for years,” Weissman said at the time. “We are excited to be the ones to bring this to market to better support independent artists. SoundCloud is uniquely positioned to offer this transformative new model due to the powerful connection between artists and fans that takes place on our platform.”