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Business News Digital
All-staff meeting heightens speculation SoundCloud will fold
By Chris Cooke | Published on Friday 14 July 2017
Following the axing of 40% of its staff last week, SoundCloud yesterday found itself fighting off new speculation that the company could soon cease operations.
Plenty of people have been predicting SoundCloud’s imminent demise following last week’s jobs cull, though such doom chatter heightened yesterday amid reports of an all-staff meeting at the firm in which founders said that the downsizing meant the company now had sufficient finance to get through to ‘quarter four’. Which isn’t very far away at all.
As some fans of the service started downloading their favourite tracks on the platform and looking for alternative similar set-ups, a spokesperson for the flagging streaming business told The Register: “To clarify, SoundCloud is fully funded into the fourth quarter. We continue to be confident the changes made last week put us on our path to profitability and ensure SoundCloud’s long-term viability”.
Talks are seemingly ongoing with potential investors, though many wonder who would now pump money into the business, with an outright acquisition by a rival streaming firm at a bargain basement price point seeming more realistic.
Meanwhile, internally, unsurprisingly much concern remains among those still working for the company. TechCruch quotes one employee as saying: “It’s pretty shitty. I know people who didn’t get the axe are actually quitting”, while another – who described the all-staff meeting as “a shitshow” – added: “I don’t believe that people will stay. The good people at SoundCloud will leave”.
