SoundCloud Cuts 40% of Staff, Reportedly Only Has Enough Money to Last for 50 Days
SoundCloud only has enough funding to continue its operations for another 50 days, according to a TechCrunch report.
The music streaming service recently laid off 173 employees — roughly 40 percent of its workforce — in an effort to cut costs and and remain independent.
But according to TechCrunch's sources, the company's founders Alex Ljung and Eric Wahlforss admitted the massive layoffs have only saved enough money to last the streaming service "until Q4," which is 50 days away.
SoundCloud responded to TechCrunch's story by refuting the leaked statistic and insisting that the service is "fully funded into Q4."
The spokesperson did admit, however, that the company is now in talks with potential investors to secure new funding.
In a statement following the company's layoffs just last week, CEO Alex Ljung painted a much more optimistic picture of the streaming service's future, stating that the cuts would put the company on a "path to profitability" and allow it to remain "in control of [its] independent future."
SoundCloud executives stated early this year that the service would be at risk of running out of money in 2017. The company lost around $52 million in 2015 (the last official numbers reported) and has suffered from the financial struggles of its subscription service, SoundCloud Go+.
In addition to the layoffs, SoundCloud also closed two of its offices in San Francisco and London.
The TechCrunch report reveals a chaotic scene at the company's two remaining offices, in New York and Berlin (its headquarters), since last week's layoffs.
Read more here: http://www.businessinsider.com/soundcloud-only-enough-funding-last-50-days-reports-2017-7