Audio distribution platform Soundcloud is reportedly heading toward a slow and painful death, as it only has enough money to keep it going until Q4.
Just last week, the company cut over 40 per cent of its workforce – letting 173 of its 420 staff go. Now, according to TechCrunch, citing sources, the company’s founders Alex Ljung and Eric Wahlforss confessed that the layoffs only saved enough money to keep the company going until the last quarter of the year – though the company says it is in in talks with potential investors.
In a note released at the time of the layoffs, Ljung’s statement spoke a very different message. “We need to ensure path to long-term, independent success. And in order to do this, it requires cost cutting, continued growth of our existing advertising and subscription revenue streams, and a relentless focus on our unique competitive advantage – artists and creators,” he said. “By reducing our costs and continuing our revenue growth, we’re on our path to profitability and in control of SoundCloud’s independent future.”
By the sounds of things, that independent future that Ljung was keen put across is nothing more than a myth. Despite growing revenues, the company is yet to post profit, and is seemingly in desperate need of outside investment sooner rather than later.