Recent developments behind the scenes at SoundCloud have led to industrywide grumbling – not the least of which resounds from employees themselves. After company co-founder Alex Ljung announced plans to lay off 40% of the staff last week, and some of the remaining employees are reportedly quitting as a result.
Sources with SoundCloud revealed to TechCrunch that Ljung and co-founder Eric Wahlforss admitted that the capital saved from the layoffs would only extend the company’s budget until the fourth fiscal quarter of 2017 – which begins in a mere 50 days. A spokesperson on behalf of the music streaming platform later confirmed the rumors.
The source also mentioned that the staff cuts had prompted some of the 60% of the employees left to plan their own exit strategy. “It’s pretty shitty,” they said. “Pretty somber. I know people who didn’t get the axe are actually quitting. The people saved from this are jumping ship. The morale is really low.”
SoundCloud’s management also faces public scrutiny for overspending; the company’s chic Berlin headquarters leave little to be desired in the way of amenities. Although the company’s marketing materials still boast 175 million monthly listeners, some employees speculate that the number could now be as low as 70 million.
SoundCloud remains in pursuit of investment capital for Q4 and beyond.
Source: Your EDM