Alexander Ljung, CEO of music streaming service SoundCloud, countered rumors that his struggling company is on life-support, saying that it will survive and that the music it features will continue to be available to its users.
“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,” he said in a blog post on Friday.
The rumors of SoundCloud’s demise follow months of dismal financial results followed by cutbacks. Last week, SoundCloud laid off 40% of its staff, according to the New York Times, raising speculation that the company is running out of cash.
In January, Ljung warned the company may run out of cash if its subscription service did not take off.
“The risks and uncertainties may cause the company to run out of cash earlier than that date, and would require the Group to raise additional funds which are not currently planned,” Ljung said. ” These matters give rise to a material uncertainty about the Group’s ability to continue as a going concern.”
The Berlin-based music service features of work of popular musicians like Kygo, Major Lazer, and Chance the Rapper. But it faces stiff competition from rivals like Spotify, Apple Music, and Pandora in a business that is almost universally a money loser.
Just had a very fruitful call with Alex Ljung. @SoundCloud is here to stay.
— Chance The Rapper (@chancetherapper) July 14, 2017
Amid the upheaval, Chance the Rapper tweeted a series of vague messages on Friday in which he said that he had spoken with Ljung and repeated that SoundCloud would survive. When Fortune contacted SoundCloud, a spokesperson downplayed the idea of Chance the Rapper deepening his relationship with the company beyond making his music available.
“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,” the spokesperson said. “Chance’s takeaway is reflected in his tweet.”
