News of an imminent end to music streaming giants SoundCloud have been circulating of late. Much of the panic grew after the company let over 40% of its workforce go recently. Just a matter of days later it was reported that SoundCloud would only survive for another 50 days!
According to TechCrunch, Alex Ljung and Eric Wahlforss, the company's founders admitted the downsizing and job losses had only saved enough money to last "until Q4." As you can imagine stories came out thick and fast about the imminent demise of the music streaming giant. Panic ensued.
To somewhat calm this situation, SoundCloud founder Alexander Ljung has issued a statement in response:
“The music you love on SoundCloud isn’t going away, the music you shared or uploaded isn’t going away, because SoundCloud is not going away. Not in 50 days, not in 80 days or anytime in the foreseeable future.”
And Alex continues:
"Along with each of you, we’ve built this incredible creative community of artists, podcasters, DJs, producers and more who are the driving force in pushing culture forward in the world. That’s not going to change. Last week we had to make some tough decisions to let go of some of our staff, but we did this to ensure SoundCloud remains a strong, independent company.
"Thank you for the outpouring of love and support. Some of you have asked how you can help–spread the word that we’re not going anywhere and keep doing what you’re doing–creating, listening, uploading, sharing, liking, and discovering what’s new, now and next in music. SoundCloud is here to stay."
We then discovered from Business Insider, a Spokesperson for SoundCloud revealed "the company is now in talks with potential investors to secure new funding". Many buzz words like "path to profitability" and "indpendent future" are being used. Hmmm. Also in a statement, SoundCloud have revealed that the original TechCrunch article isn't completely accurate:
"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."
So the plot thickens here as to whether SoundCloud are indeed 50 days away from iminenet closure due to lack of funds, or whether they are maintaing a positive because their financial calculations forecast a sustainable future, or whether this stance is positive to try and stop potential funding from saving the company.
Time will tell.
[Via: Business Insider UK]
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