Observed Signal · Aug 4, 2022 · Layoffs · Source: Trending Topics · Impact: 2/5 · Sentiment: Negative
SoundCloud Lays Off 20% of Workforce Amid Economic Climate
SoundCloud has announced it will lay off 20% of its workforce, citing the difficult economic climate and headwinds in financial markets. The cuts affect employees in the US and UK. CEO Michael Weissman communicated the decision to staff, noting that such changes are necessary given the economic conditions. The Berlin-based music streaming service has been profitable since 2020 and projects $300 million in revenue this year, generated through advertising and a paid, ad-free version of its mobile app. The company previously cut 40% of its staff in 2017 to maintain independence. Its Swedish founders, Alexander Ljung and Eric Quidenus-Wahlforss, have since left and launched an e-bike subscription startup called Dance. The layoffs follow similar moves by other tech scale-ups such as Robinhood, Klarna, Coinbase, Bitpanda, and Adverity.
SoundCloud is a major audio streaming platform with ad-supported revenue; a 20% workforce reduction signals economic pressure on digital media companies, though it does not directly alter the AdTech landscape.
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Key Takeaways & Evidence Grounding
- SoundCloud announced a 20% reduction of its workforce.
- The layoffs affect employees in the US and UK.
- CEO Michael Weissman cited the difficult economic climate and financial market headwinds.
- SoundCloud has been profitable since 2020 and targets $300 million in revenue this year.
- In 2017, SoundCloud laid off 40% of its staff to remain independent.
Connected Companies & Entities
6 Entities mapped“SoundCloud announced that 20% of its workforce will be laid off due to the difficult economic climate....”
“Robinhood is listed as one of the tech scale-ups that have had to take consequences due to the looming recession....”
“Klarna is listed as one of the tech scale-ups that have had to take consequences due to the looming recession....”
“Coinbase is listed as one of the tech scale-ups that have had to take consequences due to the looming recession....”
“Bitpanda is listed as one of the tech scale-ups that have had to take consequences due to the looming recession....”
“Adverity is listed as one of the tech scale-ups that have had to take consequences due to the looming recession....”
Ontology Mapping & Concepts
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