SoundCloud lays off 8% of its global staff
“This is a challenging but essential decision to ensure the health of our business and get SoundCloud to profitability this year,” says CEO Eliah Seton
Image: Alexander Pohl / NurPhoto via Getty Images
The company made the announcement in an email sent to its global staff, which was then obtained by Variety.
“Ultimately, I take accountability for this decision and will carry that with me every day,” SoundCloud’s CEO Eliah Seton wrote. “Most importantly, we are absolutely determined to treat everyone with the utmost respect and manage this process in as generous a manner as possible.
“This is a challenging but essential decision to ensure the health of our business and get SoundCloud to profitability this year,” he continued.
“In doing so, we are securing the company’s future for the millions of artists who rely on us for their living and their self-expression, and the millions of fans who come to SoundCloud for the joy of music. It is critical to ensure that SoundCloud thrives in our mission to influence culture, be the preeminent home for artists and fans and lead what’s next in music.”
The company has made it clear to all staff impacted by the cuts that mental health and well-being resources will be available.
SoundCloud has made numerous changes in recent years, levelling up the platform to compete with big-name rivals like Spotify and Apple Music.
Recently, the company unveiled a new tool that lets artists DM their most loyal fans. It comes as part of SoundCloud’s deal with independent digital music licenser, Merlin.
The partnership allows artists to earn money from their fan’s listening behaviour, rather than their plays being pooled and distributed through the traditional pro-rata model.
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