SoundCloud has announced another round of layoffs, with plans to let go of 8% of the company’s workforce, Variety reports.
The news arrives less than a year after SoundCloud’s sizable reduction in staff by roughly 20%. The latest round of layoffs was revealed in an email sent by SoundCloud’s CEO, Eliah Seton, who said it was “essential” to the company’s path to profitability. The specific roles and departments affected were not mentioned.
“This is a challenging but essential decision to ensure the health of our business and get SoundCloud to profitability this year,” Seton wrote. “In doing so, we are securing the company’s future for the millions of artists who rely on us for their living and their self-expression, and the millions of fans who come to SoundCloud for the joy of music. It is critical to ensure that SoundCloud thrives in our mission to influence culture, be the preeminent home for artists and fans and lead what’s next in music.”
Layoffs in the music and technology spheres have been rampant amid uncertain economic conditions. Back in January, Spotify dismissed 6% of their staff “in an effort to drive more efficiency, control costs, and speed up decision-making,” CEO Daniel Ek said at the time.
Read Seton’s full letter below, per Variety.
All,
Thank you to those of you who were able to join us on our All Hands today – a recording will be shared shortly.
For those who could not, I am sharing the difficult news that today and tomorrow, we are conducting headcount reductions, impacting 8% of the organization. Everyone whose job is impacted by this change will receive an invitation today to meet with the People Team and their manager. Meetings will take place today and tomorrow.
Please know we do not take this action lightly – it is simply the hardest thing we can do in our business. Ultimately, I take accountability for this decision and will carry that with me every day. Most importantly, we are absolutely determined to treat everyone with the utmost respect and manage this process in as generous a manner as possible.
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 and their self-expression, and the millions of fans who come to SoundCloud for the joy of music. It is critical to ensure that SoundCloud thrives in our mission to influence culture, be the preeminent home for artists and fans and lead what’s next in music.
This is difficult news to absorb. Given our sensitivity to mental health and well-being, there are extensive resources for any SoundClouder needing additional support during this time. I encourage you to visit our Opus Page for Wellness & Wellbeing or reach out to your People Team Partner as necessary.
Thank you for your continued dedication to and passion for this special place. Our artists and fans care so deeply about SoundCloud because of what you do every day.
With gratitude,
Eliah