Last week, it was reported that SoundCloud suddenly laid off 40% of its staff. Now, according to TechCrunch, the streaming platform only has enough money to last another 50 days.
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” — which begins in just 50 days.
SoundCloud responded to the story reiterating the fact that the company is “fully funded into Q4,” but they are in talks with potential investors. In response to the layoffs last week, they had a more positive outlook: “By reducing our costs and continuing our revenue growth, we’re on our path to profitability and in control of SoundCloud’s independent future.”