Music streaming platform SoundCloud will reportedly lay off 8% of its global workforce. The move will see around 40 employees of the firm losing their jobs in the coming days, according to a report by Music Business Worldwide (MBW).
The layoffs will mostly impact the workforce in the United States.
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According to the report, CEO Eliah Seton confirmed the news in an internal memo sent to company’s staff yesterday.In the memo, Seton mentioned about company’s target to become profitable as the reason for the reorganisation.
“This is a challenging but essential decision to ensure the health of our business and get SoundCloud to profitability this year. In doing so, we are securing the company’s future for the millions of artists who rely on us for their living,” Seton’s memo said, according to the report.
This is not the first time SoundCloud has announced layoffs. The firm had also laid off 20% of its workforce nine months ago under former CEO Michael Weissman.
MBW reported citing sources that the firm might be looking to raise some investment or even put the company for sale in the next 12 months.
SoundCloud hosts around 40 million artists with over 320 million tracks.
The Germany-based company's revenue stood at $273 million in 2021, while annual operating loss was pegged at $25 million.
The news of layoffs comes amid a slowdown in the tech and streaming industry. Disney, Meta and Google have been among the firms who have cut down their workforce in the recent months in a bid to reduce expenses.
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