The Loop

Is SoundCloud almost out of money?

The recent news out of SoundCloud’s HQ isn’t good. The company cut 40% of its staff last week, and this TechCrunch article from yesterday says SoundCloud only has enough “runway (cash) to keep afloat until Q4.” I know a lot of local bands and podcasters who use SoundCloud; this could be a big deal and hassle for those creators real soon.

I used SoundCloud to host my podcast for a couple years. I liked their embeddable players, but I eventually decided to move everything over to LibSyn. Timing is everything.

A rep for SoundCloud posted the following statement about the most recent report:

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.

Due to the extensive number of inaccuracies, we will only comment regarding funding and layoffs. To clarify, SoundCloud is fully funded into the fourth quarter. We continue to be confident the changes made last week put us on our path to profitability and ensure SoundCloud’s long-term viability.

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