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Music Businesses

SoundCloud Lays Off Nearly Half Its Staff, Closes Two Offices (bloomberg.com) 51

An anonymous reader quotes a report from Bloomberg: SoundCloud is cutting about 40 percent of its staff in a cost-cutting move the digital music service says will give it a better financial footing to compete against larger rivals Spotify and Apple. SoundCloud, which in January said it was at risk of running out of money, informed staff on Thursday that 173 jobs would be eliminated. It had 420 employees. The company's operations will be consolidated at its headquarters in Berlin and another office in New York. Offices in San Francisco and London will be shut.

"We need to ensure our path to long-term, independent success," Alex Ljung, the company's co-founder and chief executive officer, said in a blog post published on SoundCloud's website. He said the company has doubled its revenue over the past 12 months -- without providing specifics -- and that the cuts put it on a path to profitability.

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SoundCloud Lays Off Nearly Half Its Staff, Closes Two Offices

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  • Wait so (Score:2, Funny)

    by Anonymous Coward

    A cloud based music service doesn't need an office in five of the most expensive cities in the world?

    • Re: (Score:3, Insightful)

      by Anonymous Coward

      A cloud based music service doesn't need an office in five of the most expensive cities in the world?

      OMG! Who knew???

      But seriously, this is the problem with so many companies today. And 420 employees? Doing what?

      • Re: Wait so (Score:5, Funny)

        by Anonymous Coward on Thursday July 06, 2017 @09:50PM (#54761141)

        20 programmers, 10 accountants, 10 managers, 100 marketing millennials and 280 HR people ensuring that there are a sufficient variety of transgender bathrooms for the millennial marketing staff.

    • by lucm ( 889690 )

      having an office in an expensive city is the only way you can get mediocre leftover talent at minibar price.

      • wow, global corporate investors must have done lunch on one yacht and decided to cut staff around the world to buy another yacht so their yacht help wouldnt have to live with the money people on their yacht. its only right. my wife and i dont let our housekeeper live with us either. shes only there 3 days a week.
    • Re:Wait so (Score:5, Interesting)

      by Anonymous Coward on Thursday July 06, 2017 @08:44PM (#54760911)

      Apparently Twitter does. From the Twitter web site:

      "We have over 35 offices around the world, and each one reflects the regional and cultural spirit of the cities they're in. Atlanta's conference rooms are named after southern hip-hop icons, local artists paint giant murals in our New York office, and Sydney has a panoramic view of the city and harbor from the 39th floor (make sure you check out the sunset). Explore below to see all our offices and the job openings available."

      I can't figure out why they aren't making money.

  • Get ready people. (Score:3, Interesting)

    by Anonymous Coward on Thursday July 06, 2017 @08:40PM (#54760891)

    This is just the beginning. We're in Dot-Com Bubble 2.0: Web Services Edition. Get ready for the collapse.

  • 420 employees are the worst kind of employees.

  • by Anonymous Coward on Thursday July 06, 2017 @09:17PM (#54761037)

    SoundCloud hosts music uploaded by indie content creators with very generous licenses. Their revenue stream seems to be audio and visual advertisements, a subscription service to listen ad free, and a service for creators to upload more music.

    The problem is that any downloadable song is immediately ripped and uploaded to YouTube under "free music aggregator" accounts, which YouTube then gets the ads revenue.

    I'm not surprised SoundCloud can't make any money.

  • by DontBeAMoran ( 4843879 ) on Thursday July 06, 2017 @10:05PM (#54761189)

    Divide that number by ten and then it will make sense.

  • He said the company has doubled its revenue over the past 12 months -- without providing specifics -- and that the cuts put it on a path to profitability.

    So, they have finally figured out how to profit as an escort service. In my experience a majority of messages are like this, "I am sweet and sxxy ge with big heart who want to spend great time with you...", "I LOVE HAVING FUN with a REAL MAN!!!", etc...

  • by Anonymous Coward on Friday July 07, 2017 @02:36AM (#54762013)

    Sorry guys this was just waiting to happen. Every start-up needs a "how do we make money" component in their model. Soundcloud never had one and have never managed to develop one.

  • Either this is the company taking the easy way (cop) out, or they are desperate , or a combination of both. Tsk. Tsk.
  • I expect another music/streaming service will buy them out.

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