Citing the uncertain economic environment, SoundCloud has announced an 8 per cent reduction in its workforce. SoundCloud CEO Eliah Seton informed the global team about the staff reduction through a memo, citing concerns about profitability as one of the reasons behind the decision. The company has already started implementing responsible financial measures throughout its operations along with the job cuts.
The artist-first platform previously cut 20 per cent of its workforce attributing it to the difficult economic conditions, in 2022. This round of layoffs will mostly impact its US-based workforce.
The move is expected to benefit the company in the long run. taken into account for the company’s well-being. Additionally, this isit’s a part of its objective of achieving sustained profitability which was also emphasised during the previous round of layoffs, positioning them as a means to put SoundCloud on a trajectory towards financial stability. This latest “headcount reduction” appears to be the subsequent stage in that strategy, as sources suggest that SoundCloud aims to achieve profitability by the fourth quarter.
Furthermore, to strengthen the financial stability of the company, the leadership is also said to be actively seeking new investors.
While SoundCloud’s recent layoffs align with the unfortunate trend observed in various technology brands, it is noteworthy that the company has been gradually downsizing its workforce over an extended period. Apart from the layoffs implemented last year, SoundCloud had already reduced its staff by a significant 40 per cent in 2017. At that time, the former CEO, Alex Ljung, had stated that these cuts were essential for SoundCloud to maintain control over its independent future.
