SoundCloud is laying off 8% of its staff as it aims to achieve profitability this year

Music streaming platform SoundCloud has laid off 8% of its staff according to multiple reports. The new round of job cuts comes after the company laid off 20% of its employees last August.

In a memo sent to staff – seen by Variety – CEO Eliah Seton said SoundCloud is downsizing to achieve a profitable position this year. “This is a difficult but essential decision to ensure the health of our business and ensure that SoundCloud becomes profitable this year. In doing so, we are securing the future of the business for the millions of artists who count. on us for their life and self-expression, and the millions of fans who come to SoundCloud for the enjoyment of music,” the CEO said in the memo.

“Ensuring SoundCloud thrives on our mission to influence culture, be the preeminent home for artists and fans, and lead the future of music is critical to ensuring that SoundCloud thrives.”

It was Seton’s first major move after becoming CEO in March and replacing Michael Weissman.

Over the past few years, SoundCloud has expanded its partnerships with multiple labels like Merlin and Warner Music Group to fuel its fan-powered royalty program. The project distributes advertising and subscription revenue to the user artists listened to. It is a more granular royalty program compared to other streaming services. Earlier this year, the company launched a TikTok-like vertical feed for music discovery. Last month, SoundCloud launched a fan engagement tool allowing artists to get more information and communicate with their fans.

SoundCloud claims to have 130 million “engaged fans”. It currently hosts over 320 million tracks from over 40 million creators.

Music streaming startups are in a tough spot as they try to achieve profitability. Last year, India’s Tencent-backed app Gaana switched to a subscription-only service. Bytedance’s Resso app, which operates in India, Brazil and Indonesia, followed suit as it also went behind a paywall this month.