“There’s an insane amount of noise about SoundCloud in the world right now. And it’s just that, noise.”
SoundCloud founder Alexander Ljung has issued a statement in response to reports from earlier this week that the company only has money left for 50 days of business: “The music you love on SoundCloud isn’t going away, the music you shared or uploaded isn’t going away because SoundCloud is not going away. Not in 50 days, not in 80 days or anytime in the foreseeable future.”
At the beginning of the month, SoundCloud laid off 40% of its workforce and closed its offices in San Francisco and London. Downsizing of this magnitude usually signals something dire and, according to reports, SoundCloud does not have the funding to continue work in 2018. (Whether they only have money to stay afloat “until Q4” or are “fully funded through Q4” has not been confirmed, but both statuses have been reported to different publications, including FACT.)
SoundCloud also told FACT that they will “continue to be confident the changes made last week put [them] on [their] path to profitability and ensure SoundCloud’s long-term viability.” While Spotify and others have been rumored as potential investors or buyers in the past, yesterday Chance the Rapper – whose Grammy acceptance speech included a shout out to the streaming platform – tweeted that he was “working on the SoundCloud thing”, sparking rumors he was going to send them a life raft. Chance later followed up that he had a “fruitful conversation” with Ljung and that SoundCloud is “here to stay.”
Ljung built on this sentiment with a statement on SoundCloud’s blog. You can read that in full below.
“There’s an insane amount of noise about SoundCloud in the world right now. And it’s just that, noise. The music you love on SoundCloud isn’t going away, the music you shared or uploaded isn’t going away, because SoundCloud is not going away. Not in 50 days, not in 80 days or anytime in the foreseeable future. Your music is safe.
“Along with each of you, we’ve built this incredible creative community of artists, podcasters, DJs, producers and more who are the driving force in pushing culture forward in the world. That’s not going to change. Last week we had to make some tough decisions to let go of some of our staff, but we did this to ensure SoundCloud remains a strong, independent company.
“Thank you for the outpouring of love and support. Some of you have asked how you can help–spread the word that we’re not going anywhere and keep doing what you’re doing–creating, listening, uploading, sharing, liking, and discovering what’s new, now and next in music. SoundCloud is here to stay.