After laying off 40 percent of its worldwide staff last week, SoundCloud is apparently nearing bankruptcy, as TechCrunch reports that sources at the company claim the downsizing only saved the company for about 50 more days (via FACT.)
SoundCloud founders Alex Ljung and Eric Wahlforss apparently have admitted that the layoffs, which saw 173 employees terminated with little to no warning, only saved the company enough money to last until their fourth quarter, which begins in just 50 days. SoundCloud held an all-staff meeting earlier this week to explain the massive layoffs to both disgruntled former employees, some of whom had recently been hired, and those staying on at the company.
One employee said that even the remaining “good people at SoundCloud” may leave due to the company’s issues. About the all-staff meeting, the employee says, “Eric [Wahlforss] said something about the SoundCloud ‘family,’ and there were laughs. You just fired 173 people of the family, how the fuck are you going to talk about family?”
SoundCloud reports have surfaced over the last two years documenting massive losses for the company, including a loss of $44 million in 2014 and $52 in 2015, while rumors of buyouts from giants like Spotify, Google and Twitter have circulated.