SoundCloud lays off 8% workforce, seeking further investors and profitability

SoundCloud has announced a further reduction in its workforce in a continuing effort to address the challenging economic climate and pave the way for sustained profitability. Last August, the company made headlines by cutting its staff by 20 per cent and now SoundCloud has revealed plans to reduce its staff by an additional 8 per cent. 

According to internal communications, this decision is described as both challenging and essential, aimed at safeguarding the company's overall health and driving it towards profitability this year. This strategic objective was already evident in the previous round of layoffs, where SoundCloud emphasised that the reductions were intended to position the company on a path to sustained profitability.

The latest "headcount reduction" can be seen as a natural progression in this ongoing plan. Sources close to the company have disclosed to Billboard that SoundCloud aims to achieve profitability by the fourth quarter of this year. Alongside this effort, SoundCloud's leadership is reportedly engaged in attracting new investors to support the company's growth trajectory.

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It is worth noting that SoundCloud has been gradually reducing its workforce over an extended period of time. In addition to the significant cuts made last year, when 20 per cent of employees were let go, the company previously implemented a 40 per cent reduction in its workforce back in 2017.

The move echoed the trend seen in other prominent tech companies such as Microsoft, Google, Meta (formerly Facebook), and Amazon who have also framed layoffs as necessary restructuring or cost-cutting measures.

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