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posted by takyon on Saturday August 12, @11:15PM   Printer-friendly
from the Netcraft-unavailable-for-comment dept.

According to Techcrunch, Soundcloud has secured the emergency funding which will allow the service to survive:

SoundCloud has just closed the necessary funding round to keep the struggling music service afloat. CEO Alex Ljung will step aside though remain chairman as former Vimeo CEO Kerry Trainor replaces him. Mike Weissman will become COO as SoundCloud co-founder and CTO Eric Wahlforss stays as chief product officer.

Further coverage at Ars Technica and BBC News.

Soundcloud's layoff of 40% of staff and the subsequent rumours of a collapse have been covered here before.

Original Submission

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SoundCloud is Cutting Nearly 40 Percent of its Staff 7 comments

SoundCloud is cutting over 40 percent of its staff, the company announced on its blog. The streaming service will let go 173 of its 420 employees in order to "ensure our path to long-term, independent success," SoundCloud CEO Alex Ljung wrote. The news was first reported by Bloomberg.

As part of the reduction, the company will shutter its offices in San Francisco and London, leaving only its New York and Berlin offices operational. It's been a trying year for SoundCloud to say the least. The company announced it may possibly run out of money before the end of 2017 back in January, before landing a $70 million credit line from investors to stave off certain collapse.

Source: The Verge

Original Submission

All Your Bass are Belong to Us: Soundcloud Fans Raid Site for Music Amid Fears of Total Collapse 13 comments

Music hosting biz SoundCloud, having just axed 40 per cent of its staff, is now trying to ward off rumors that it will go broke in less than two months.

The song-sharing service was rumored to be in crisis mode and had to shut its doors, with just 50 days of funding left before it ran out of cash. A spokesperson insisted Thursday, however, that this is not the case, and that following last week's layoffs, SoundCloud is going to be able to turn a profit soon.

[...] This comes as SoundCloud struggles to get its advertising and subscription revenues up high enough to push the music-sharing service into the black. Since 2008, the company has relied on VC funding to stay afloat and, after nine years, is still trying to turn a profit.

SoundCloud is Cutting Nearly 40 Percent of its Staff

Original Submission

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  • (Score: 2) by kaszz on Saturday August 12, @11:44PM (2 children)

    by kaszz (4211) on Saturday August 12, @11:44PM (#553035) Journal

    It's not problem that it's not dead yet - we just wait a bit longer. All the while we backup it all ;-)

    In the meantime all employees can show off how cool job they have, while they still have it :P
    Has it been SJW, diversity, irrelevant projects, MBA doomed yet? ;)

    • (Score: 0) by Anonymous Coward on Sunday August 13, @01:23AM (1 child)

      by Anonymous Coward on Sunday August 13, @01:23AM (#553062)

      All the while we backup it all ;-)

      Why? It's shit!

      Has it been SJW, diversity, irrelevant projects, MBA doomed yet? ;)

      Founded in Stockholm, headquartered in Berlin. Safe to say they're left of centre and doomed to failure.

      • (Score: 2) by kaszz on Sunday August 13, @02:22AM

        by kaszz (4211) on Sunday August 13, @02:22AM (#553073) Journal

        Stockholm has that bad reputation? ;-)

        Q: How does Stockholm people drill a hole in the wall on the cheap?
        A: Yelling to the night street, "pale virgin on the other side" :P

  • (Score: 2) by jmorris on Sunday August 13, @08:44AM (1 child)

    by jmorris (4844) Subscriber Badge <> on Sunday August 13, @08:44AM (#553160)

    We are talking about a company that had under 500 people working for it BEFORE the layoffs started, spread out in several cities. They are supposedly taking in a hundred million and can't keep the lights on. With the reduced headcount that is over 300K per, they have some serious expenses if they are still burning cash. But again go back to that 100M topline revenue number. That is a pretty small tech company. And they just took on 1.6 times revenue in series F funding? Wonder how Series A-E feel? Think they are going to be seeing a return on their investment anytime soon? Did anyone ever ask how they planned to actually make money before they threw sacks of cash at them? Or was it all just buzzwords about streaming, cloud and disrupting paradigms or some lame crap like that?

    #FakeEconomy. This is the .com bubble 2.0 getting bloated and ready to burst. Pud should revive because we are going to need it again for cathartic release.

    • (Score: 0) by Anonymous Coward on Sunday August 13, @11:55AM

      by Anonymous Coward on Sunday August 13, @11:55AM (#553195)

      "You need to enable JavaScript to use SoundCloud"

      We don't.