SoundCloud confirms layoffs affecting 20% of its global workforce
SoundCloud will lay off approximately 20% of its global workforce, citing “a significant business transformation” and the current economic and financial landscape.
“During this difficult time, we are focused on providing support and resources to those making the switch, while reaffirming our commitment to fulfilling our mission of leading the future of music,” a SoundCloud representative said in a statement.
Earlier this year, SoundCloud began detailing changes to the company aimed at providing a higher level of artist-focused support to artists at all stages of their careers by incrementally increasing monetization and providing additional distribution tools. This year alone, the company has partnered with Pandora and Splice, acquired artificial intelligence company Musiio, and also formed a joint venture with management and creative services firm Solid Foundation.
In March 2021, the company took the atypical step of introducing “fan-driven royalties” — in which a listener’s subscription or advertising revenue is shared among the artists who listen to them, rather than piling their tracks into a common pool.
The music streaming platform has made similar layoffs in the past. During the initial transition from a free service to a formal subscription business in 2017, the company laid off 40% of its employees and closed offices in San Francisco and London.
On Wednesday (Aug. 3), Billboard published portions of SoundCloud CEO Michael Weissman’s email to employees notifying employees of the upcoming layoffs. The email cited the various changes to the company as “the driving force” that would help the brand “remain focused on our mission of leading the future of music.” Additionally, Weissman’s email confirmed that affected employees in the US and UK “will be notified in the next few days.”
https://variety.com/2022/music/news/soundcloud-layoffs-1235332540/ SoundCloud confirms layoffs affecting 20% of its global workforce