20% of SoundCloud's global workforce is being let go
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| 20% of SoundCloud's global workforce is being let go |
SoundCloud, a streaming service, is laying off approximately 20% of its global workforce. According to a memo sent to the workforce by SoundCloud CEO Michael Weissman, the shift is mostly a result of the present economic climate, Billboard reported on August 3rd. Affected employees would receive notifications over the next few days.
Weissman stated in the memo that "today's shift positions SoundCloud for the long haul and puts us on a road to ongoing profitability." "We have already started to make wise financial decisions across the organization, and that now includes a decrease in our personnel," the company representative said. A SoundCloud official confirmed the information in a statement to Billboard, adding: "During this challenging moment, we are focused on providing support and resources to individuals transitioning while reinforcing our commitment to executing our vision to lead what's next in music."
In March 2021, SoundCloud implemented a new payout system that distributes money paid in by subscribers or advertisers directly to the artists fans choose to stream. In contrast, Spotify and Apple Music pool subscription and advertising money before dividing it based on which artists contributed the most streams. They adopted a licensing agreement with Warner Music Group in July so that they could use the same royalty structure.
Tesla, Substack, Coinbase, and OpenSea are just a handful of the tech businesses that have announced layoffs or changes to their employment strategies, along with SoundCloud. Spotify announced in a workplace message in June that it would be "examining" business "headcount growth" and would be cutting hiring by 25%.
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