SoundCloud, the popular music streaming platform, has announced that it will be laying off 8% of its staff as part of its efforts to reach profitability this year. The company has been struggling financially for some time now, and this move is seen as a necessary step towards turning things around.
The layoffs will affect around 40 employees. SoundCloud CEO Eliah Seton said in a statement that the decision was a difficult one, but necessary in order to ensure the long-term success of the company. SoundCloud has faced a number of challenges in recent years, including increased competition from other music streaming services like Spotify and Apple Music.
“Ultimately, I take accountability for this decision and will carry that with me every day,” Seton wrote. “Most importantly, we are absolutely determined to treat everyone with the utmost respect and manage this process in as generous a manner as possible.
“This is a challenging but essential decision to ensure the health of our business and get SoundCloud to profitability this year,” he continued. “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. It is critical to ensure that SoundCloud thrives in our mission to influence culture, be the preeminent home for artists and fans, and lead what’s next in music.”
The company has also struggled to monetize its platform effectively, with many users opting for the free, ad-supported version of the service rather than paying for a premium subscription. In addition to the layoffs, SoundCloud is also making other changes to its business model in an effort to become profitable. The company is reportedly exploring new revenue streams, such as advertising and partnerships with brands and artists. It is also looking to expand its user base by targeting new markets and demographics. Despite these challenges, SoundCloud remains a popular platform for independent artists and music fans alike. The company has a loyal following of users who appreciate its unique features, such as the ability to upload and share their own music with others. As SoundCloud works to turn its financial situation around, it will be interesting to see how these changes affect the platform and its users. Will the company be able to successfully monetize its service without alienating its core user base?