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.
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After cutting 40% of its staff, SoundCloud still reportedly has only 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.
SoundCloud cofounder Eric Wahlforss.
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 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, .
In addition to the layoffs, SoundCloud also closed two of its
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"There are a number of inaccuracies within the TechCrunch article. They seem to stem from a misinterpretation of information by one or two laid off employees during a recent all hands meeting. Due to the extensive number of inaccuracies, we will only comment regarding funding and layoffs. To clarify, SoundCloud is fully funded into the fourth quarter. We continue to be confident the changes made last week put us on our path to profitability and ensure SoundCloud’s long-term viability. In terms of layoffs, it is our policy not to discuss individual employee cases, but we can share we continue to work with all employees who were let go to support them during this transition, with employment and financial assistance."
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