Soundcloud has been in dire-straits since a while now. The recent developments are only suggesting worse for the streaming service industry’s fading star. On the back of closing operations at their SanFrancisco and London offices, SC held a meeting of all the employees. The video broadcast was hosted by the founders Alex Ljung and Eric Wahlforss from the HQ in Berlin.
According to a Techcrunch report and their sources, the elephant in the room was not addressed. Founders Alex and Eric admitted that the company has enough funds to last until Q4 which is in complete contrast to what they had said earlier. Hauntingly enough, Q4 begins in 50 days and so does the countdown for them. However, Soundcloud later told Techcrunch that they will be entering Q4 with sufficient funding.
The report also addresses the mismanagement at Soundcloud and how it laid off employees who were just hired. One such employee named Vojta Stavik moved to start work at its Berlin office, but was laid off just 10 days before his start date. There are numerous such examples if we go by the report. Sources confessed that the company were hiring employees for soon to be relinquished positions that provided for last week’s cost cutting.
The rising fear among the staff at Soundcloud is contributing majorly towards the decline of the firm. Sources say that SC has been cost cutting due to a condition in a debt funding agreement.
Sadly, the question about Soundcloud’s existence has changed to an IF? from a WHEN?
The report also claims that the number of listeners boasted by the company (175 million) is also going down rapidly as we speak and has become much lesser than claimed.
Are we witnessing the end of an era with Soundcloud’s demise or will there be an early Christmas miracle? Come Q4, all our questions might be answered. Having said that, Soundcloud indeed looks like its going South.
Source : Techcrunch