In light of the media circus that emerged around SoundCloud last week, company co-founder Alex Ljung has issued an official statement. The streaming platform’s controversial decision to cut 40% of its staff spurred rumors of its imminent dissolution, but Ljung has insisted that the company will remain afloat.
Sources close to SoundCloud had told TechCrunch that the layoffs would only extend its operational budget to the fourth fiscal quarter of the year. In his statement, Ljung sought to dispel these notions. He wrote:
There’s an insane amount of noise about SoundCloud in the world right now. And it’s just that, noise. The music you love on SoundCloud isn’t going away, the music you shared or uploaded isn’t going away, because SoundCloud is not going away. Not in 50 days, not in 80 days or anytime in the foreseeable future. Your music is safe.
Along with each of you, we’ve built this incredible creative community of artists, podcasters, DJs, producers and more who are the driving force in pushing culture forward in the world. That’s not going to change. Last week we had to make some tough decisions to let go of some of our staff, but we did this to ensure SoundCloud remains a strong, independent company.
Thank you for the outpouring of love and support. Some of you have asked how you can help–spread the word that we’re not going anywhere and keep doing what you’re doing–creating, listening, uploading, sharing, liking, and discovering what’s new, now and next in music. SoundCloud is here to stay.
Ljung’s statement might indicate that SoundCloud has reached an agreement with investors since announcing the layoffs. Over the weekend, hip-hop emcee Chance The Rapper tweeted that he had a “very fruitful conversation” with Ljung, and that “SoundCloud is here to stay.” Numerous record labels would lose a major promotional avenue if the website ceased operations as well, which could have prompted a number of parties to come to its aide.
SoundCloud has not publicly disclosed any financial projections at this time.
Source: Your EDM