Streaming company SoundCloud lays off 20% of its workforce

SAN FRANCISCO: Streaming platform SoundCloud has announced to cut 20 per cent of its workforce "given the challenging economic climate and financial market headwinds".

SoundCloud CEO Michael Weissman wrote in an email that affected employees would be notified over the next several days, reports Billboard.

"We will be making reductions to our global team that will impact up to 20 per cent of our company," Weissman said in the email.

"Making changes that affect people is incredibly hard. But it is one that is necessary given the challenging economic climate and financial market headwinds," he added.

The change positions SoundCloud for the long run and "puts us on a path to sustained profitability", Weissman said.

In 2017, SoundCloud fired about 40 per cent of its workforce for the company's "long-term, independent success".

This time, the company said that it has "begun to make prudent financial decisions across the company and that now extends to a reduction to our team".

"We are focused on providing the support and resources to those transitioning while reinforcing our commitment to executing our mission to lead what's next in music."

SoundCloud announced its first profitable quarter in 2020.

Earlier this year, the company said its annual revenue run rate was around $300 million.

Other music and content streaming platforms like Spotify and Netflix have also announced job cuts.