SoundCloud is set to lay off a significant number of its employees. According to an email acquired by both Billboard and Resident Advisor, the company plans to layoff nearly 20 percent of its total workforce.
In the email, SoundCloud CEO Michael Weissman notes how, though difficult, the move is necessary “and puts us on a path to sustained profitability.” Weissman went on to say that the choice to lay off staff “it is one that is necessary given the challenging economic climate and financial market headwinds.” This is not the first time SoundCloud laid off a significant number of its employees. In 2017, nearly 40 percent of workers were laid off with reports that the company was going bankrupt.
Weissman also notes how these changes are part of an overall larger strategy to improve SoundCloud’s profitability through “prudent” financial choices. The company has tried a number of tactics recently, including partnerships with Pandora and the introduction of a game changing new royalties model, which pays out based on users’ listening histories.
Affected employees will receive news over the course of the next few days, and a spokesperson for SoundCloud speaking to Billboard ensures that they will receive the support necessary to transition out of the company. SoundCloud itself, meanwhile, will continue “reinforcing our commitment to executing our mission to lead what’s next in music.”
