It Is A New Normal
SoundCloud Chief Michael Weissman announces staffing cuts, downsizing 20% of its global workforce. The streaming company told the staff in a memo that the change is in accordance with the current economic climate.
Layoffs Have Become Companies’ Integral Response To The Challenges Created By Rapidly Changing Economy And Inflationary Pressure
Weissman did the same. He had to rethink the workforce strategy to put the streaming company on a path to sustained profitability. “Today’s change positions SoundCloud for the long run and puts us on a path to sustained profitability”, Weissman wrote in the memo.
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His strategy was to make sparing use of staff reduction that would not disruptively impact the ones leaving. In a statement to Billboard, a rep for SoundCloud confirmed the news and said,
“During this difficult time, we are focused on providing the support and resources to those transitioning while reinforcing our commitment to executing our mission to lead what’s next in music”.
The Layoffs Should Feel Fairer And The Discharged Employees Should Have A Soft Landing
“Making changes that affect people is incredibly hard. But, it is necessary given the challenging economic climate and financial market headwinds”.
Memo obtained by Billboard reads
The impacted employees will be notified over the next few days according to Weissman’s message. In the email to employees, SoundCloud highlighted its mission to lead what is next in music. It further said, “the company transformation we set in motion last year drives everything that we do and will continue to be our driving force.”
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Inflation, War In Ukraine, And Lingering Pandemic Is Stirring Companies Up To Rethink Their Workforce Strategies Like Freezing Hiring, Laying o Workers, And Overturning Oers
Back in 2017, SoundCloud slashed 40% of its workforce. The then CEO said that the act was necessary to control the company’s independent future.
SoundCloud is among the pool of tech companies to announce layoffs. Many big tech companies have slowed down the hiring process and started to lay off a big chunk of their workforce.
A Pool Of Companies Are Bracing For a Recession
Last month, Tesla laid off more than 200 employees, Coinbase let go of its 1,100 workers earlier this year, and Google slowed its hiring process.
Twitter and Meta have also recently announced a hiring freeze and Apple might take this step next year.
Similarly, Microsoft Corp. told workers in May that it is cutting down on the hiring process in the Windows, Office, and Teams group due to the economic rifts.
