To remain profitable, SoundCloud will lay off up to twenty percent of its employees. The reason is the current economic climate and the financial market.
SoundCloud announced the reorganization via an email from CEO Michael Weismann to employees. This is reported by various media, including Billboard and Variety, and was also confirmed by a spokesperson for the company.
The layoffs will mainly occur in the United States and the United Kingdom. However, it is still unclear how many jobs will be cut. It is estimated that about 1,700 people work for SoundCloud.
It is not the first time that the company has announced a significant layoff. In 2017, the company laid off 40 percent of its employees when it was experiencing financial difficulties. Since then, the company has attracted hundreds of millions of dollars in investment.
In addition, the first quarter of 2020 was the company’s first profitable quarter.