Audio streaming platform is the latest firm to cut jobs as the company is saying off 8 per cent of its workforce. The job cuts at SoundCloud were announced during an all-hands meeting by CEO Eliah Seton, says a report by Billboard. The report quoted sources within the company saying that these cuts will get them at the targeted profits for the first time in company history.
SoundCloud had set a quarter 4 (Q4) target date for profitability.
Company CEO Eliah Seton said in a meeting with employees that layoffs are being made "in order to help the company turn a profit".
"Everyone whose job is impacted by this change will receive an invitation to meet with the People Team and their manager," Seton was quoted as saying in a memo.
He took accountability for this decision, saying "this is a challenging but essential decision to ensure the health of our business and get SoundCloud to profitability this year." The company also said it would seek further investors for the audio streaming service.
In August last year, SoundCloud announced to cut 20 per cent of its workforce "given the challenging economic climate and financial market headwinds". Then SoundCloud CEO Michael Weissman wrote in an email that 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.
In 2017, SoundCloud fired about 40 per cent of its workforce for the company's "long-term, independent success".
Meanwhile, Facebook parent Meta isn't done with job cuts and it is likely to fire 6,000 more employees this week. According to Nick Clegg, the firm's President of Global Affairs, the third wave of job cuts at Meta will happen this week, says a report by Vox. The layoffs may impact Meta's business departments and could affect thousands of employees.