The prognosis on SoundCloud, the popular but financially strapped streaming service, has been grim for all of 2017, with 40 percent of its staff laid off last week and statements from its founders that it may not have enough money to see it through the year. According to a report published Wednesday in TechCrunch, the company may not have enough money to see it through the summer.
According to the long and bruising report, a video conference was held Monday by cofounders Alexander Ljung and Eric Wahlforss to explain last week’s layoffs to the staff — and during the course of the otherwise largely uninformative meeting, the staff was told the company has only enough cash to last “until Q4,” which begins in 50 days.
On Thirsday afternoon (July 13), after this article originally published, SoundCloud responded with a statement in which it said in part: “There are a number of inaccuracies within the TechCrunch article. They seem to stem from a misinterpretation of information by one or two laid off employees during a recent all hands meeting. …. To clarify, SoundCloud is fully funded into the fourth quarter.” (Head here to read SoundCloud’s full statement.)
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