Soundcloud has played a major part in the music industry over the last few years, home to both individual tracks, and podcasts from a range of artists, including some of the biggest names, while also playing host to up and coming talent. Recently however, the platform has been going downhill, having laid off 40 percent of its staff last week when it closed its London office.
According to TechCrunch, Soundcloud founders Eric Wahlforss and Alex Ljung informed staff about the layoffs by video conference, and revealed that the service would only have enough money to remain fully funded for 50 more days. Undoubtedly, if this is the end for Soundcloud, it will be damaging to the industry, particularly future talent who rely on the platform for exposure.
Here’s what co-founder Alex Ljung had to say when announcing the layoffs:
“We need to ensure our path to long-term, independent success. And in order to do this, it requires cost cutting, continued growth of our existing advertising and subscription revenue streams, and a relentless focus on our unique competitive advantage — artists and creators.”