Is Overspending Leading to SoundCloud's Tight Budget?
To say SoundCloud has fallen onto some tough times is a massive understatement. It seems like every week we hear more and more bad news about the popular music site. Just two days ago we reported on their massive layoffs, and the closing of their San Francisco and London offices.
According to an article by Paul Renikoff on Digital Music News, SoundCloud has been accused of overspending. He compiled and posted pictures of the extravagant offices, and one must question if their future would be brighter if the offices were more modest
According to the article, three years ago the Berlin office was only half-full. It doesn’t take an advanced business degree to understand that you are wasting valuable money by operating in a building far larger than required. And then there’s the New York office… Finished in 2015, this luxurious 40,000 square foot Manhattan office costs the company millions of dollars a year in rent.
I’m no financial consultant, but if I lent my advice I would be selling off these offices ASAP. Modern offices as nice as these, in prime locations should sell pretty quick. Downsizing could help save the remaining jobs and put them in a position to earn more revenue with less costs.
Hopefully they can figure things out and keep the platform online. SoundCloud has been a crucial piece to many EDM artist’s success. It would be a real shame to see one of the last (and best) user-generated music platforms fall. Maybe they’ll figure it out, or maybe they’ll sell to someone who can. Either way my fingers are crossed!
H/T: Digital Music News