The End May Be Near for SoundCloud
On Thursday, TechCrunch reported music/podcast service SoundCloud only has enough money to sustain itself into Q4 of 2017 (roughly 80 days). This comes in wake of the company’s massive layoffs last week where 40% of its staff were let go.
TechCrunch, citing a source at SoundCloud, reported that employee morale is low.
“It’s pretty shitty. Pretty somber. I know people who didn’t get the axe are actually quitting. The people saved from this are jumping ship,” said an employee speaking on anonymous terms.
There’s even employees who were hired, only to be let go before even starting. That was the case for Vojta Stavik who was supposed to start working at SoundCloud Berlin on July 17 but was told he didn’t have a job anymore on July 7. He’s reportedly considering legal action against the company because, he claims, the signed job offer included 4 weeks notice of dismissal and they aren’t going to pay him for those 4 weeks.
Although SoundCloud brags that it has 175 million monthly users, analysts say those numbers may actually be below 70 million.
SoundCloud did respond to TechCrunch’s report, insisting the company is “fully funded into Q4,” noting it was in talks with investors. So the money troubles exist, it’s just a matter of how broke SoundCloud really is.