SoundCloud says it’s ‘here to stay’ amid rumors it’s running out of cash

Following a tumultuous week at Berlin-based music streaming service SoundCloud, which last week laid off 40 percent of its staff without warning, the company’s chief exec has responded by saying “SoundCloud is here to say.” In a blog post posted to the company’s website, CEO Alex Ljung tried to reassure users and musicians alike that 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.”

TechCrunch reported earlier this week that, following the massive layoffs, SoundCloud still only had enough cash to last until the beginning of the fourth fiscal quarter of 2017, or around 80 days. Ljung definitively shut down that timeline, saying the company was not going away any time in the foreseeable future “Not in 50 days, not in 80 days or anytime in the foreseeable future. Your music is safe,” he wrote.

SoundCloud isn’t divulging more concrete details about its financing, but the most curious element of the saga involves Chance the Rapper, who got his start on SoundCloud and appeared to have stepped in at some point in the last week with either advice or a potential offer of financial support.

After an apparent conversation with Ljung, Chance tweeted, “Just had a very fruitful call with Alex Ljung. @SoundCloud is here to stay.” It’s unclear if Chance offered the company investment or some other kind of support. “As an active member of the SoundCloud community, Chance connected with co-founder and Chief Executive Officer, Alex Ljung, to inquire about the rumors and speculation circulating,” a company spokesperson told TechCrunch in a statement today. “Chance’s takeaway is reflected in his tweet. SoundCloud is here to stay.” On Friday, Chance released a new track, “Big B’s,” with Young Thug exclusively on SoundCloud to hammer home his commitment to the platform.

So Soundcloud does appear to be working through its financial troubles, and Chance’s support is doing wonders for its image in the public eye. But it’s still up in the air how the company that was once a podcast powerhouse and still remains a vital part of the indie music scene will find a way to make money with the razor-thin margins on streaming.

Here’s the CEO’s message in full:

Hey everyone,

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.

Peace,

Alex