EDM.com Spotlight

EDM.com Spotlight

Sources Close to SoundCloud Report That The Platform Will Run Out of Money in 50 Days

The end is near for “the YouTube of music”. For the past week we have been reporting on the fall of SoundCloud, and it looks like we're entering the penultimate chapter. According to a report from TechCrunch the troubles are far worse than we imagined.

Just six days ago we reported on SoundCloud laying off 40% of its employees and closing two of its offices. After the layoffs and closures, the SoundCloud management ensured users that the cuts would help keep the company and the SoundCloud community alive. According to TechCrunch and their inside source, this is not the case. The source informed them that the founders of SoundCloud admitted the layoffs only will fund the organization until Q4. Unfortunately for them, Q4 is just 50 days away. Not to be a downer, but turning around a multimillion dollar company without selling in just over two months seems like a HUGE stretch

Company morale is reportedly at an all time low, and employees have seemingly given up hope for the company. While speaking to TechCrunch about company morale, an anonymous employee said

“...it’s pretty shitty. Pretty somber. I know people who didn’t get the axe are actually quitting. The people saved from this are jumping ship. The morale is really low.”

Last weekend we reported on accusations involving overspending in the SoundCloud camp. This new report seems to support those claims. Apparently some of SoundCloud’s offices had catered meals twice a week, lavish decorations and locations, and they gave out laptops and headphones to employees.

It’s one thing to treat employees well, but it should be done in such a way that does not jeopardize the future of the company. An employee spoke on this to TechCruch and said:

“...blowing through money, but now is saying they don’t have any money. People would have made sacrifices, to be honest. It’s a fun company to work at, but there was no indication.”

What’s next for the company? Hopefully they can sell to someone who can take over and help keep SoundCloud alive. It would be a shame to lose a platform that has helped so many artists grow. I mean, where else are we going to put our fire mixtapes?!

H/T: TechCrunch