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SoundCloud lays off 8% of staff as it aims to reach profitability this year

Music streaming platform SoundCloud has laid off 8% of its employees, according to multiple reports. The latest round of job cuts comes after the company laid off 20% of its workforce last August.

In a memo sent to employees — seen by Variety — CEO Elia Seton said SoundCloud is reducing headcount this year in order to return to profitability. “This is a challenging but necessary decision to ensure the health of our business and ensure SoundCloud achieves profitability this year. In doing so, we are securing the future of the company for the millions of artists who rely on us for their lives and their expression, and the millions of fans who come to SoundCloud to enjoy the music they enjoy,” the CEO said in the memo. Said .

“It is critical to ensure that SoundCloud thrives in our mission to influence culture, become the premier home for artists and fans, and drive what happens next in music.”

It was Seton’s first major move since becoming CEO in March and replacing Michael Weissman.

Over the past few years, SoundCloud has expanded partnerships with several labels such as Merlin and Warner Music Group to power its fan-driven royalty program. The project distributes advertising and subscription revenue to artists that users listen to. It has a more detailed royalty schedule than other streaming services. Earlier this year, the company launched a TikTok-like vertical feed for music discovery. Last month, SoundCloud launched a fan-engagement tool for artists to gain more insight and communicate with their fans.

SoundCloud claims to have 130 million “connected fans”. It currently hosts over 320 million tracks from over 40 million creators.

Music streaming startups are in a tough spot as they try to achieve profitability. Last year, Tencent-backed Indian app Gaana switched to a subscription-only service. ByteDance’s Reso app, which operates in India, Brazil and Indonesia, followed suit as it went behind a paywall this month.

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