Published: Fri, July 14, 2017
Money | By Armando Alvarado

SoundCloud's desperate layoff maneuver only bought itself enough time until Q4

SoundCloud's desperate layoff maneuver only bought itself enough time until Q4

According to a recent TechCrunch report, Ljung's hopeful tone masked a more chaotic scene inside the company, as SoundCloud sources detailed a company-wide meeting that took place on Tuesday.

Soundcloud had fans anxious after a recent TechCrunch story published on Wednesday wrote that "sources at SoundCloud tell TechCrunch that founders Alex Ljung and Eric Wahlforss confessed the layoffs only saved the company enough money to have runway "until Q4" - which begins in just 80 days".

SoundCloud, the world's biggest music-streaming service, is still struggling to find a business model - it now has enough cash to last until fourth quarter, after laying off 40 percent of its staff, a representative said on Thursday.

In his initial statement on the layoffs, shared July 6, Ljung explained the staff cuts served as a method of ensuring the company's path to "long-term, independent success".

Tour de France - stage 12: Bardet victor , Aru yellow
Crucially, he was 20 seconds down on Aru, meaning that the Italian has claimed the yellow. Froome said: "My legs weren't there at the end but there's still a lot of race to go".

According to TechCrunch, who have spoken to a number of sources within the company, moral is obviously at rock bottom, with numerous 170 remaining staff looking towards the exit door already, with many accusing Soundcloud's upper management and its founders from hiding the real truth from them about the company's health and user numbers. "By reducing our costs and continuing our revenue growth, we're on our path to profitability and in control of SoundCloud's independent future", he said last week. "There are a number of inaccuracies within the TechCrunch article", the message reads.

Now, how Soundcloud proceeds from here is where the real speculation is. It was targeted by Spotify a year ago in a bid that was later aborted. SoundCloud PR also confirmed the same timeline, but also mentioned the company is looking into investors.

As of press time, we have not received a response from the company. In 2014, the Berlin-based company reported a loss of $44 million in 2014.

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