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Charlotte Krol
30 May 2023, 13:32

SoundCloud lays off 8% of its staff

It comes less than a year after up to 20% off its staff lost their jobs

Orange version of the SoundCloud logo

SoundCloud has taken the “difficult” decision to lay off 8% of its global staff as part of a bid to make the streaming platform profitable in 2023.

The move, which will affect approximately 40 of its staff, was announced in an email sent by CEO Eliah Seton that was obtained by Variety.

Seton stressed that it's “simply the hardest thing we can do in our business”. The move follows the company reducing its headcount by up to 20% last August.

“Ultimately, I take accountability for this decision and will carry that with me every day,” Seton wrote in his email. “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,” he continued.

“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.”

In March 2021 SoundCloud introduced fan-powered royalties, where a listener’s subscription or revenue from the platform's advertising deals is distributed among acts listened to rather than streams being collected in a pool.