SoundCloud Firing 20% of Its Global Workforce

Dejan Cvetnarevic
Dejan Cvetnarevic

Updated · Aug 05, 2022

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The music streaming company confirmed on Thursday that it has cut about 20% of its global workforce on its path to “sustained profitability.”

Another Massive Firing

The company’s SEO Michael Weissman explсхеа in a company memo that the move is a result of the current economic climate. SoundCloud will notify affected employees in the next few days.

“During this difficult time, we are focused on providing the support and resources to those transitioning while reinforcing our commitment to executing our mission to lead what’s next in music,” a company representative said.

This is the second time SoundCloud has had to lay off a chunk of its employees, having previously fired about 40% of its workforce in 2017. It then cited “long-term, independent success” as the main reason.

Last year, the music streaming giant introduced a new payout system. It allocates funds it earns from subscribers and advertisers directly to the artists its 200 million users choose to stream. Before that, the company pooled all subscription and advertising money together before dividing it between artists with the most streams.

Cutting Costs

SoundCloud is just one of many tech companies announcing staff layoffs recently.

Last week, Shopify announced that it is firing 10% of its workers after taking a wrong bet on how long its pandemic-caused explosive growth will last.

Netflix laid off 300 employees in June. That’s due to the loss of 200,000 subscribers in the first quarter of 2022 and the account sharing problem (41% of users watch content for free).

Other companies such as Google, Meta, and Twitter have announced they will be slowing down and freezing their hiring processes. Apple intends to introduce a hiring slowdown in 2023.

Sources.

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Dejan Cvetnarevic

Dejan Cvetnarevic

Dejan is a techie at heart who always dreamed of turning his fascination with gaming into a career. He finds working for TechJury a perfect opportunity to express his views of all kinds of different software. Being an avid reader, particularly of fantasy and sci-fi, Dejan pursued a degree in English Language and Literature. When not at his computer, he’s watching sports or playing tabletop games.

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