SoundCloud, one of the major online audio distribution and music sharing platforms, has announced that it will be laying off nearly 20% of its workforce. According to Pitchfork, the company shared a statement with the news website and wrote, “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.”
Pitchfork further reports that SoundCloud CEO Michael Weissman shared a letter with employees, in which he wrote, “Today’s change positions SoundCloud for the long run and puts us on a path to sustained profitability. We have already begun to make prudent financial decisions across the company and that now extends to a reduction to our team.” SoundCloud has recently made partnerships with Pandora, Music Foundation and Splice, and acquired artificial intelligence company Musiio.
Employees will reportedly be notified “over the next few days” on the status of their roles within the company. The move comes after SoundCloud announced a new “Fan Powered Royalty” system last year. It claimed that the system allowed partner Portishead to make 500% more in earnings, and that 135,000 independent artists were now making use of the system. Warner Music Group also recently announced it would follow in SoundCloud’s lead.
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