SoundCloud, the popular streaming service and distribution company, has laid off 8% of its workforce in an effort to improve profitability, according to reports from Billboard, Variety, and Resident Advisor. The decision was made by SoundCloud’s CEO Eliah Seton, who took on the role in March. This marks the second round of layoffs for the company, following a reduction of 20 percent of its staff in August of last year.
In a memo sent to employees and obtained by TechCrunch, Seton explained the rationale behind the decision, stating, “This is a challenging but essential decision to ensure the health of our business and get SoundCloud to profitability this year.” He emphasised the importance of securing the company’s future for both artists and fans, who rely on SoundCloud for their artistic expression and musical enjoyment.
In recent developments, SoundCloud introduced a new tool last month aimed at helping artists identify their most dedicated fans. This tool is part of the company’s larger strategy to transition to fan-powered royalties, which involves collaborations with music industry partners such as Merlin and Warner Music Group.
