On July 6, SoundCloud co-founder Alex Ljun issued a statement, announcing that 173 employees, amounting to 40 percent of the staff, had been laid-off from the Berlin-based company.
“By reducing our costs and continuing our revenue growth, we’re on our path to profitability and in control of SoundCloud’s independent future,” Ljung wrote in the statement.
According to a recent TechCrunch report, Ljung’s optimistic tone masked a more chaotic scene inside the New York and Berlin based company, as SoundCloud sources detailed a company-wide meeting that took place on Tuesday.
During the video conference, founders Alex Ljung and Eric Wahlforss reportedly told the remaining staff that the company only had enough funding to make it to “until Q4” — or for another 50 days.
SoundCloud has since released a statement citing an “extensive number of inaccuracies” in the figures from TechCrunch’s sources for the report. Read the full statement below:
“There are a number of inaccuracies within the TechCrunch article. They seem to stem from a misinterpretation of information by one or two laid off employees during a recent all hands meeting.
Due to the extensive number of inaccuracies, we will only comment regarding funding and layoffs. To clarify, SoundCloud is fully funded into the fourth quarter. We continue to be confident the changes made last week put us on our path to profitability and ensure SoundCloud’s long-term viability. In terms of layoffs, it is our policy not to discuss individual employee cases, but we can share we continue to work with all employees who were let go to support them during this transition, with employment and financial assistance.”
After signing licensing deals with major labels in March, SoundCloud launched its own paid service, SoundCloud GO, but the company has neglected to released subscriber figures. In the past year, multiple companies including Spotify, Twitter, and, most recently, Google, have been rumored as potential buyers.
Earlier today (Friday, July 14) Chance the Rapper took to Twitter to share the news that the struggling social streaming service, which was so strapped for cash it was apparently going to have to shut down for good by the end of the year, is officially saved.
He tweeted out, “Just had a very fruitful call with (Soundcloud CEO) Alex Ljung. Soundcloud is here to stay.”
Just had a very fruitful call with Alex Ljung. @SoundCloud is here to stay.
— Lil Chano From 79th (@chancetherapper) July 14, 2017
Although we have no idea what the Southside Chicago MC is going to do, it’s hopeful news for any artists, DJs, and podcasters who would have had to search for other hosting arrangements had it shut down. Stay tuned.