SoundCloud is going to cut 20 percent of its global workplaces

SoundCloud, a streaming service, is eliminating about 20% of its global workforce. According to Billboard on August 3rd, SoundCloud CEO Michael Weissman informed staff in a company letter that the adjustment was mostly due to the present economic climate. Employees would be notified in the following days.

“Today's change positions SoundCloud for the long run, and it puts us on a path to sustained profitability,” Weissman wrote in the memo. “We've already started making wisely financial decisions across the organization, and now that includes a staff reduction.” In a statement to Billboard, a SoundCloud spokesperson confirmed the news and said: "During this difficult period, we are committed to assisting those transferring while also reaffirming our commitment to leading what's next in music."

SoundCloud laid off about 40% of its employees in 2017, claiming it was essential for the company's "long-term, independent success." In March 2021, SoundCloud put in place a new payout plan that distributes money paid in by subscribers or advertisers directly to the artists' fans choose to stream rather than pooling subscription and advertising money together then dividing it up based on which musicians streamed the most music. They signed a licensing agreement with Warner Music Group in July using the same royalty structure.

Many technology firms have recently revealed either job cuts (Tesla, Substack, Coinbase, and OpenSea) or staffing adjustments (Spotify in June). Spotify stated in a corporate letter that it would be reducing its hiring by 25% and "evaluating" company "headcount growth." Other firms including Google, Twitter, and Meta have also announced reduction in recruitment activity, while Apple is reported to plan to slow down hiring at certain locations in 2023.

Source: www.theverge.com