Streaming platform SoundCloud is facing its demise as it issues major cuts in preparation.
SoundCloud, per reports, has only enough funds to last approximately 50 more days and will barely make it through the summer. The Berlin-based streaming staple has laid off over 400 employees in an attempt to compete with other platforms like Apple Music, Spotify and Tidal last week. The company has also shut down offices in San Francisco and London.
A statement from SoundCloud, published by Variety, correcting a TechCrunch article that originally reported SoundCloud only had 50 days to survive, got redundantly specific, stating that they only have enough money to last through its fourth quarter, which begins in 50 days.
“To clarify, SoundCloud is fully funded into the fourth quarter,” the statement reads. “We continue to be confident the changes made last week put us on our path to profitability and ensure SoundCloud’s long-term viability. In terms of layoffs, it is our policy not to discuss individual employee cases, but we can share we continue to work with all employees who were let go to support them during this transition, with employment and financial assistance.”
SoundCloud has had financial woes dating back over a year when rumors circulated that they’d be shutting down before the implementation of SoundCloud Go+, which would allow listeners to listen to their favorite songs offline, ad-free with access to premium tracks for $9.99 a month.
According to another streaming platform, Audiomack this was a mistake on SoundCloud’s part. In a series of tweets, Audiomack calls out SoundCloud and gives some insight into what took place with the company.
“We use to work w/ Soundcloud to support our mutual users until they decided cut off the partnership,” one tweet reveals. “A little secret that only a few industry people knew was that Audiomack was actually behind many of the large play counts on Soundcloud. We knew by allowing artists to use Soundcloud to create song posts on audiomack that we’d be enabling SC but we still put artists 1st anyway. We offered to pay Soundcloud to allow artists to use their API – so artists can centralize their plays while using our support & reach. They declined our offer. They put their bankers and venture capitalists needs over the artists who helped build their platform.”
So, it appears the demise of the SoundCloud rapper is near. However, not if Chance the Rapper has anything to say about it.. When news hit detailing SoundCloud’s financial turmoil, the Grammy Award-winning rapper tweeted that he’s “working” on it. As an independent artist, SoundCloud played a vital role in Chance’s early success, same as it has for many other popular artists that subsequently went on to be successful off the platform. Several notables include Bryson Tiller, XXXTentacion and Playboi Carti.