Things aren't looking good at SoundCloud HQ. Just last week it was reported the streaming company had to lay off 40 per cent of its staff and close down its London office. A new report claims it only has enough money to last "just 50 days."
According to the TechCrunch report, a video conference was held to inform staff why a portion of employees were laid off. It was in this founders Eric Wahlforss and Alex Ljung revealed the layoffs meant the company would have enough cash to last "until Q4", according to SoundCloud sources. Q4 begins in 50 days.
However, SoundCloud told TechCrunch "we are fully funded into Q4" when asked if the sources' claims were true. The TechCrunch report also details how the morale of those still in a job is "really low".
Announcing the job layoffs last week, Ljung wrote: “We need to ensure our path to long-term, independent success. And in order to do this, it requires cost cutting, continued growth of our existing advertising and subscription revenue streams, and a relentless focus on our unique competitive advantage — artists and creators.”
It is believed the company, which received $70 million of funding from Twitter last year, is looking for investors.
Dave Turner is Mixmag's Digital News Editor, follow him on Twitter