Music discovery and sharing platform SoundCloud has announced that it will lay off up to 20% of its employees globally.
The news was revealed in an email sent to the company’s employees by its CEO, Michael Weissman, this week.
“We have decided to make reductions to our global team that will impact up to 20% of our company,” the email reads.
Weissman also shared the news on his LinkedIn profile: “Making changes that affect people is incredibly hard,” the exec wrote. “But it is one that is necessary to ensure SoundCloud’s long-term success given the challenging economic climate and financial market headwinds. 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’s global staff complement is estimated to be around 400 employees, which means about 80 of its workers could exit the company soon. Those affected by the move will be notified within the next week or so, the company said. Billboard says the employees who are impacted span across the US, UK and Germany.
This is not the first time SoundCloud is significantly reducing its workforce to achieve business continuity. In 2017, the company made 173 employees redundant, which represented (about 40% of its team). Since then, SoundCloud has improved its financial health status and reported its first profitable quarter in 2020.
Elsewhere, the platform has achieved some expansion with the launch of a new in-house distribution platform and a user-centric royalties initiative, which was recently adopted by Warner Music Group.
The move follows a number of recent announcements of layoffs in the US made by tech companies such as Chinese-owned TikTok and software giant Oracle.