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Soundcloud Reportedly Has Enough Money for 80 More Days

News | Jul 14, 2017

Soundcloud Reportedly Has Enough Money for 80 More Days

A recent leak in information following a company-wide meeting revealed that the popular, independent streaming platform only has enough money to last until Q4 of this fiscal year. Even after their 40% staff reduction, the money they allegedly saved from the layoffs was only enough to buy them time for another 80 days.

The company is currently in talks with potential investors, and cofounder Alex Ljung still conveys hope that the company will be able to survive these trying times.

According to a statement he released to Complex, he reaffirms that “SoundCloud is fully funded into the fourth quarter. We continue to be confident the changes made last week put us on our path to profitability and ensure SoundCloud’s long-term viability.”

Employees aren’t so optimistic. Team morale in the company is at an all time low, with some of the remaining staff deciding to leave the company, even after surviving the 170+ layoffs that happened last week.

The staff was also informed during the meeting that Soundcloud had known for awhile that the layoffs had to happen, but didn’t relay information to the other offices to cut costs and stop the hiring process for new employees. Several employees were hired, uprooted their lives, and moved to begin work at the Soundcloud headquarters in Berlin, only to be fired shortly after.

In the same statment, Alex Ljung continued saying, “In terms of layoffs, it is our policy not to discuss individual employee cases, but we can share we continue to work with all employees who were let go to support them during this transition, with employment and financial assistance.”

With Soundcloud as a major contributor to the rise of many independent artists including Kaytranada, Snakehips, and Mura Masa, this blow to the independent music industry could be a big one.

We found this tweet by Chance the Rapper to be a little comforting, though.

[UPDATE]: Chance the Rapper tweets to the world that Soundcloud is here to stay. Although details are still unknown about the exact course of action they plan to take, the music world can now take a breath in the assurance that one of the most influential music streaming platforms isn’t going anywhere anytime soon.

Share your thoughts and opinions on the Soundcloud shutdown in the comments below.

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