The SoundCloud online sharing and streaming service has fired half of its employees, with just enough money to remain in place for about three months.
The TechCrunch tech site source said the SoundCloud online music service has just fired half of its employees. At the same time, co-founders Alex Ljung and Eric Wahlforss admitted that they only had enough money to keep up in less than three months.
TechCrunch predicts that the SoundCloud music service is having a hard time maintaining its business. If they can not call for more capital to sustain their activities, the music service could be closed.
Meanwhile, many users of the SoundCloud service said many of the songs disappeared from their playlists for unknown reasons. SoundCloud also does not have any feedback on this ongoing issue.
SoundCloud also offers music sharing and streaming services, with mostly amateur music sharers. Users of SoundCloud services can access the free service and ad mix, with over 120 million songs.
A $ 4.99 monthly subscription will allow users to skip commercials and provide offline music. A subscription of $ 9.99 per month will allow users to access over 30 million royalty-free songs, by world-renowned artists.
After 10 years, SoundCloud only grossed over $ 200 million in revenue, with a major portion of its music licensing costs. Obviously, this service can not yet compete with Spotify or Apple Music with its $ 9.99 subscription packages.
SoundCloud currently has over 175 million users, in more than 190 countries worldwide. If this online music sharing and sharing service were closed, it would be sad news for a large community of music listeners and composers around the world.
[Update] A representative of SoundCloud has attempted to refute TechCrunch’s post, claiming that there is a lot of inaccurate information. SoundCloud representatives also said the company had successfully called for the forthcoming the fourth quarter to continue operations, while layoffs would still receive decent support so they could continue to find new jobs. SoundCloud insists that they are still looking for a new direction to build a sustainable business model.
However, there is no denying the difficulties SoundCloud is having. After failing to make a $ 100 million call, the company has to borrow $ 70 million to keep it going. There are rumors of SoundCloud looking for a buying partner, but there is not much confirmation yet.