SoundCloud Made Big Changes Today In The Hopes Of Increasing Profit.
Today, SoundCloud announced that it cut 40% of its staff in a blog post on its website. They described the move as a move that positions them to improve their profitability for the future. 173 staffers were laid off and 2 offices were closed leaving them with only the New York office and the home office in Berlin open.
This decision happened at a seemingly awkward time because they claimed to double their revenue in the past year in the same announcement meaning that this staff reduction was not necessarily done because they cannot afford to pay the staff. However, there’s a possibility that that is the reason because recently, SoundCloud was in talks with competitor Spotify to be acquired by them and the talks fell through. They were in talks with Twitter as well and that didn’t work out either. This move indicates that they are trying to remain as profitable as possible as an independent streaming service in a very competitive streaming platform market.
What does this mean for all the listeners and SoundCloud rappers out there? Nothing. It means nothing as of right now. It might indicate something for the future of the platform but, we will have to wait and see what that is. More ads are probably a part of it somehow.