SoundCloud announced that it will be laying off around 8% of its global staff in an email from CEO Eliah Seton obtained by PvNew. The move, which will impact around 40 people, follows a more-severe round of cuts back in August that saw the company reducing its headcount by some 20%.
“Ultimately, I take accountability for this decision and will carry that with me every day,” Seton wrote. “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.
The company, which was a sort of wild child in the streaming business in the 2010s, has been in the process of repositioning itself as a more-formal streaming service for the past several years. In March of 2021, the company made the atypical move ofintroducing “fan-powered royalties”— where a listener’s subscription or advertising revenue is distributed among the artists that they listen to, instead of their plays being piled into a collective pool.
Seton’s note to staff follows below in full:
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
