(Image credit- Latestly)
Following prior layoffs last year, SoundCloud will eliminate around 8% of its personnel in an effort to increase profitability. CEO Eliah Seton made this announcement to the staff during an all-hands meeting.
8% of the Workforce will be laid off
SoundCloud Elian Seton, the company’s chief executive officer, revealed that it would be letting go of 8% of its workforce, which will affect about 40 workers. The recent layoffs, according to a Variety article, come after a more serious wave of job cuts in August that decreased the company headcount by 20%.
An official from the corporation indicated that this decision will mostly impact employees who are based in the United States. The People Team will send out invitations to meetings today and tomorrow to the employees who will be impacted by the change, together with their manager.
SoundCloud will be able to safeguard the company’s future by making layoffs for the millions of artists who depend on the platform for their livelihood and self-expression, as well as for the casual listeners who come for the joy of music.
In order to fulfill its objective to shape culture, serve as a home for artists and fans, and pioneer the next phase of music, the company is in a “critical” condition to make sure this endeavor is made.
Trying to Be Profitable
Seton declared that he accepts full responsibility for this choice and that he will live with it every day. “Please understand that this is not something we are doing lightly; it is simply the hardest thing we can do for our company. This is a difficult but necessary choice to maintain the viability of our company and bring SoundCloud to profitability this year,” he continued.
According to the reports, one of the company’s goals to become profitable by the fourth quarter of this year is the latest headcount decrease. In addition, it is said that corporate executives are courting and haggling with potential new investors.
Given that the business is sensitive to its employees’ mental health, Seton regarded this news as “difficult to absorb.” In an effort to provide broad options for any employee in need of further support at this time, SoundCloud invited their employees to visit their Opus Page for Wellness and Wellbeing or People Team Partner.
This SoundCloud announcement comes less than a year after the firm eliminated up to 20% of its workforce during a prior wave of layoffs in August 2022, according to Billboard. According to the company’s former CEO Michael Weissman, these reforms will benefit the business in the long run because they have put it on the road to much more consistent profitability.
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Since last year, the corporation has been steadily laying off employees, and we have noticed a pattern. In addition to the most recent layoffs and the one from last year, the business also reduced its employment by 40% in 2017.