Soundcloud had fans worried after a recent TechCrunch story published on Wednesday wrote that "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 80 days."
But now, Soundcloud is assuring everyone that they are fully funded and that the information wasn't true. Check out their full statement below.
This all started on Wednesday after TechCrunch published an article writing about how Soundcloud had recently laid off 40 percent of it's staff the week before along with quotes from sources at Soundcloud.
The one quote that had everyone buzzing though is the confidential sources citing that Soundcloud founders "Alex Ljung and Eric Wahlforss confessed the layoffs only saved the company enough money to have runway “until Q4” — which begins in just 80 days."
Another source talked about some tension inside the Soundcloud office, "Eric [Wahlforss] said something about the SoundCloud ‘family,’ and there were laughs. You just fired 173 people of the family, how the fuck are you going to talk about family?”
TechCrunch reached out to Soundcloud who told them that they are fully funded into Q4, but are "in talks with potential investors"
Soundcloud has now come out with a full statement in response to the TechCrunch article where they write, "SoundCloud is fully funded into the fourth quarter." You can read the entire statement below, via Variety.
“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. In terms of layoffs, it is our policy not to discuss individual employee cases, but we can share we continue to work with all employees who were let go to support them during this transition, with employment and financial assistance.”
TechCrunch's Josh Constine responded to Soundcloud with a statement of his own, which you can also read below.
"SoundCloud has clumsily attempted to refute our TechCrunch article on its financial and morale problems by issuing a statement to Variety saying our post contains ‘extensive inaccuracies,’ yet its supposed ‘corrections’ simply repeat what we did publish, and refute something we didn’t publish. SoundCloud writes ‘SoundCloud is fully funded into the fourth quarter,’ which is the same quote we already included from its PR. SoundCloud writes ‘we continue to work with all employees who were let go to support them during this transition, with employment and financial assistance,’ but we never said it wouldn’t support these employees, merely that it uprooted people’s lives by hiring them and then laying them off weeks later. TechCrunch stands by its reporting."