Music streaming company Soundcloud announced that there would be an 8% reduction of its workforce. Obviously, this layoff aims to help SoundCloud in the long run and put it on a path to sustained profitability. The popular platform’s leaders sent a memo to the staff on Tuesday (May 23).
Soundcloud continues to downsize after having to lay off 20% of its workforce last August. However, the company doesn’t shy from the truth. In fact, CEO Eliah Seton noted in an all-hands meeting that the layoffs are being made in order to help the company turn a profit. Here is what she said in the memo :
“This is a challenging but essential decision to ensure the health of our business and get SoundCloud to profitability this year. 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.”
The decision mainly affects U.S.-based employees, a representative from SoundCloud confirmed. Approximately 40 employees part of Soundcloud’s workforce will lose their jobs at the company. SoundCloud claims it has 130 million “engaged fans.” It currently hosts more than 320 million tracks from over 40 million creators.
Soundcloud is making more than changes to the company workforce these days. As a matter of fact, the music streaming platform switched its logo from orange to black. Who knows what’s next for the company, only time will tell. To read the full memo sent to the staff obtained by Variety, please click here.
Stay tuned for more news!