As word of layoffs ricochets around the world, SoundCloud will, unfortunately, join the masses. The audio distribution and music sharing platform plans an approximate 20% reduction of its global workforce. SoundCloud CEO Michael Weissman emailed employees, informing them that U.S. and U.K. staff will be notified if they're impacted over the next few days.
The company told TechCrunch the decision was due to “a significant company transformation and the challenging economic and financial environment.”
SoundCloud added, “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.”
In a LinkedIn post yesterday, Weissman wrote, “For those impacted by this decision, I want to thank you personally for your passion and contributions to SoundCloud and the artist communities we serve. You have all made an incredible impact on the music industry and on artists' lives. SoundCloud has always been resilient, and together, we will continue to embrace the challenge of leading what’s next in music.”
Just two weeks prior, he shared a post from the company announcing two executive hires, Jessica Rivera and Maurice Slade.
The last time SoundCloud cut its workforce was in 2017, when it made a 40% reduction. Since then, SoundCloud has been building toward profitable growth, with its annual revenue run rate around $300 million.
In July, SoundCloud inked its first major label partnership with Warner Music Group, for it's Fan-Powered Royalties initiative, which was promising news for the company. A couple of months earlier, in May, the company acquired AI music curation company Musiio.