The biggest platform for sharing music, especially fire internet rap bangers, has reportedly been pushed to the edge. A new report suggests that the streaming platform Soundcloud only has enough cash to survive for 50 more days.
Soundcloud employees quoted by TechCrunch, said that SoundCloud cofounders, Alexander Ljung and Eric Wahlforss, told staff that despite laying off 40 percent of its workforce, the company only had enough money to survive until Q4—which is just 50 days from now.
Despite the leaks from the video conference, a company spokesperson told Techcrunch that the company was “fully funded into Q4” and currently in talks with investors.
Whether the company is financially stable or not, the employees who spoke to Techcrunch are clearly pissed off. “The people saved from this are jumping ship,” one employee said. “Morale is really low.” Another employee said that staff laughed during the video conference when Erich Wahlforss described the SoundCloud staff as family. “You just fired 173 people of the family! How the fuck are you going to talk about family?”
Another grimy detail revealed from the meeting was that SoundCloud knew it had to layoff a lot of staff months ago but did not properly inform its employees. It was also reported that the company even hired staffers who were laid off shortly after quitting their old jobs and moving to Berlin. One staff member, Vojta Stavik, told Techcrunch that he is taking legal action against the company. Stavik was set to start on July 17 and fired ten days before his start date. He said his contract stipulated that he was supposed to receive four weeks’ notice of dismissal. Stavik further told TechCrunch that SoundCloud had refused to pay his salary for the four-week period.
So whatever happens to SoundCloud, one can only hope that it can save itself from this ticking doomsday clock. However, it might be a good idea now to save your SoundCloud gems while you still can because who knows what will happen to all that music if the site shuts down.