SoundCloud is a streaming platform that allows independent artists to share their music online.
It’s emerged via an internal email obtained by Billboard that SoundCloud appears to be in some financial difficulty and is being forced to make some staff redundant.
The message was allegedly sent on the 3rd of August 2022 by Michael Weissman who is SoundCloud’s CEO: “We will be making reductions to our global team that will impact up to 20% of our company,” he said in the email. “Making changes that affect people is incredibly hard. But it is one that is necessary given the challenging economic climate and financial market headwinds.”
He continued to say: “Today’s change positions SoundCloud for the long run and puts us on a path to sustained profitability. We have already begun to make prudent financial decisions across the company and that now extends to a reduction to our team.”
Making specific reference to SoundCloud employees in the UK and US, it was stated in the memo that those people “will be notified over the next few days”.
SoundCloud intends to hold an all-hands meeting this week “to discuss these changes in more detail.”
So far there is no indication that there will be any change in service for the platform’s users and it appears that for now, it’s only job cuts, which hopefully means that the streaming platform will continue to run without disruption.
There have been music industry rumours for a number of years that SoundCloud had been struggling and although this is not confirmed or given as a reason for the job cuts, it’s certainly a worrying sign for anyone that has spent years using the platform to build a fanbase.