Soundcloud probably lays off employees

Around 20 percent of employees are apparently to be laid off. According to media reports CEO Michael Weissman announced the layoffs via email.

Music streaming service Soundcloud is laying off a fifth of its workforce, according to a report by the British medium Billboard is laying off a fifth of its workforce. The layoffs are in response to the difficult economic climate and financial market headwinds, the Medium reported. At least, that's what it said in an email to employees. According to the statement, the startup will part with up to 20 percent of its employees in the United States and the United Kingdom. Exactly how many employees Soundcloud has is unclear. On Linkedin, the company has around 1,700 employees.

"Today's change positions Soundcloud for the long term and puts us on a path to sustainable profitability," CEO Weissman is quoted as saying by Billboard. "We've already begun making prudent financial decisions across the company, and that now extends to reducing our team," Weissman said. The company had already made major reductions to its workforce in 2017. At that time, 40 percent of its employees had to leave due to financial difficulties.

The music and audio platform, founded in 2007 by Alex Ljung and Eric Wahlforss, reported its first profitable quarter in company history in 2020. The company would have targeted $300 million in revenue for the current year.