SoundCloud sinks as leaks say layoffs buy little time | TechCrunch
A tense scene unfolded yesterday as user-generated, music-streaming service SoundCloud held an all-hands meeting to explain to employees why it suddenly had to lay off 40 percent of its staff last week.Exiting team members wanted to know why they werent warned, while those who survived the cuts wanted assurance that the cost reductions would keep the company afloat for the long-run.But as security ominously filed into SoundClouds meeting rooms at its offices around the world during the all-hands video conference broadcast from its Berlin headquarters, the startups staff discovered they wouldnt be getting the answers they wanted. Instead, sources at SoundCloud tell TechCrunch that founders Alex Ljung and Eric Wahlforss confessed the layoffs only saved the company enough money to have runway until Q4 whoch begins in just 80 days. [Correction: 80 days, not 50 days]That seems to conflict with the statement Ljung released alongside the layoffs, whoch noted that, With more focus and a need to think about the long term, comes tough decisions. The company never mentioned how short its cash would still last.
Källa: SoundCloud sinks as leaks say layoffs buy little time | TechCrunch
