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SoundCloud confirms down-sizing that could impact up to 20% of its workforce

By | Published on Thursday 4 August 2022


SoundCloud yesterday told its employees that the company is about to go through some down-sizing which will have an impact on up to 20% of its workforce.

Confirming the job cuts, a spokesperson subsequently told Billboard that the changes were necessary as SoundCloud tackles “significant company transformation and the challenging economic and financial environment”.

It’s not the first time SoundCloud has experienced some dramatic down-sizing, with around 40% of the firm’s workforce let go back in 2017. That followed a revamp of the SoundCloud business which had seen the company enter into licensing deals with the record companies and music publishers and then launch a consumer-facing subscription streaming service.

Those moves had placated a music industry that had become increasingly critical of SoundCloud in the preceding years regarding all the unlicensed content that had been available on the platform. However, it also shifted the already cash-strapped SoundCloud beyond its original mission of providing services to online creators, and into the very competitive and costly business of running of a subscription streaming set-up.

After the 2017 down-sizing, new investment was raised and new management put in place, and since then – despite still operating its consumer-facing services – SoundCloud has again put the focus on providing services to independent music-makers and online creators. In the main those moves seem to have worked and resulted in a much more secure business, though the creator services sector is also pretty damn competitive.

Confirming the latest developments in a Linked-In post yesterday, SoundCloud CEO Michael Weissman wrote: “Earlier today, I shared the news that we have decided to make reductions to our global team that will impact up to 20% of our company. Making changes that affect people is incredibly hard. But it is one that is necessary to ensure SoundCloud’s long-term success given the challenging economic climate and financial market headwinds”.

“For those impacted by this decision”, he added, “I want to thank you personally for your passion and contributions to SoundCloud and the artist communities we serve. You have all made an incredible impact on the music industry and on artists’ lives. SoundCloud has always been resilient, and together we will continue to embrace the challenge of leading what’s next in music”.