With news last week that Soundcloud have let off 40 per cent of their staff and to close down their London office, sources are now saying they only have enough money to last them another 50 days.
According to a report from the TechCrunch, a video conference was held which let their staff know why they were being let off. In the video conference the founders Eric Wahlforss and Alex Ljung said the layoffs would leave them with enough money to last “until Q4”, which begins in 50 days. SoundCloud then explained to TechCrunch how they are “fully funded into Q4”. TechCrunch also reported how the morale in the SoundCloud office is “really low”.
With the announcement of the job layoffs, Alex Ljung noted: “We need to ensure our path to long-term, independent success. And in order to so 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”.
SoundCloud also apparently received $70 million in funding from Twitter last year. In the meantime check out our Soundcloud while it’s still there.