News: SoundCloud plans additional staff reduction of 8% to address financial challenges

Strategic HR

SoundCloud plans additional staff reduction of 8% to address financial challenges

Apart from the significant staff reductions implemented last year, leading to a 20 per cent decrease in the workforce, SoundCloud had previously undertaken a substantial workforce reduction of 40 per cent in 2017.
SoundCloud plans additional staff reduction of 8% to address financial challenges

To tackle the demanding economic environment and establish a foundation for lasting profitability, SoundCloud has unveiled its decision to further downsize its workforce. Following last year's notable staff reduction of 20 per cent, the company has now announced plans to implement an additional 8 per cent reduction in its workforce.

As reported by Business Today, the decision to reduce the workforce is characterised as a challenging yet crucial step taken by SoundCloud to ensure the company's overall well-being and propel it towards profitability in the current year. This strategic objective was already evident in the prior round of layoffs, during which the company emphasised that the reductions were strategically aimed at positioning the company on a trajectory towards sustained profitability.

Seen as a logical continuation of their ongoing strategy, the recent "headcount reduction" at SoundCloud aligns with their objective to attain profitability by the fourth quarter of this year, as per sources familiar with the matter revealed to Billboard. Simultaneously, SoundCloud's leadership is actively seeking to attract new investors in order to bolster the company's growth trajectory.

It is important to highlight that SoundCloud has been implementing a gradual reduction in its workforce over an extended period. In addition to the notable staff cuts made last year, which resulted in a 20 per cent reduction in employees, the company had previously executed a substantial 40 per cent workforce reduction back in 2017.

This action reflects a pattern observed in other notable technology companies, including Microsoft, Google, Meta (formerly Facebook), and Amazon. These companies have similarly portrayed layoffs as essential restructuring or cost-cutting measures.

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Topics: Strategic HR, #HRCommunity, #Layoffs, #HRTech

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