SoundCloud lays off 8% of employees because it goals to achieve profitability this 12 months

Music streaming platform SoundCloud has laid off 8% of its employees in response to multiple reports. The recent spherical of job cuts comes after the corporate laid off 20% of its employees last August.

In a memo despatched to employees — seen by Variety — CEO Eliah Seton mentioned that SoundCloud is lowering headcount to get to a worthwhile place this 12 months. “It is a difficult however important resolution to make sure the well being of our enterprise and get SoundCloud to profitability this 12 months. In doing so, we’re securing the corporate’s future for the thousands and thousands of artists who depend on us for his or her residing and their self-expression, and the thousands and thousands of followers who come to SoundCloud for the enjoyment of music,” the CEO mentioned within the memo.

“It’s important to make sure that SoundCloud thrives in our mission to affect tradition, be the preeminent dwelling for artists and followers and lead what’s subsequent in music.”

This was Seton’s first main transfer after becoming the CEO in March and changing Michael Weissman.

In the previous couple of years, SoundCloud has expanded partnerships with a number of labels like Merlin and Warner Music Group to energy its fan-powered royalty program. The challenge distributes ad and subscription revenues to artists customers listened to. It’s a extra granular royalty program in comparison with different streaming companies. Earlier this 12 months, the corporate debuted a TikTok-like vertical feed for music discovery. Final month, SoundCloud launched a fan-engagement tool for artists to get extra insights and talk with their followers.

SoundCloud claims it has 130 million “engaged followers.” It presently hosts greater than 320 million tracks from over 40 million creators.

Music streaming startups are in a troublesome spot as they’re attempting to attain profitability. Final 12 months, Tencent-backed Indian app Gaana switched to a subscription-only service. ByteDance’s Resso app, which operates in India, Brazil and Indonesia, adopted go well with, because it additionally went behind a paywall this month.