Soundcloud has sprung some major leaks in terms of their money levels.
According to a new report from Tech Crunch, the music streaming service only has enough funding to continue its operations for another 50 days and has laid off 173 employees , roughly 40 percent of its workforce in an effort to cut costs and and remain independent.
However, Founders Alex Ljung and Eric Wahlforss denied the report and spoke of the future of Soundcloud with more glowing terms. “By reducing our costs and continuing our revenue growth, we’re on our path to profitability and in control of Soundcloud’s independent future,” Ljung said.
The Berlin, Germany founded-company released a statement citing an “extensive number of inaccuracies” in the figures from TechCrunch’s sources for the report. Read the full statement below:
“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.”