SoundHound Voice AI Company Cuts Workforce in Half: What This Means for the Future

Home AI News SoundHound Voice AI Company Cuts Workforce in Half: What This Means for the Future

Updated on November 9 2024

SoundHound Lays Off Half Its Workforce Amid Restructuring Efforts

SoundHound, once poised to compete with giants like Amazon and Google in the AI voice market, has dramatically reduced its workforce by approximately 200 employees, nearly half of its staff. This recent layoff is part of a broader company-wide restructuring and follows a previous cut of 10% last November.

Before these layoffs, SoundHound employed around 450 people. According to former employees, the severance package offered was inadequate, providing only two weeks of pay and no healthcare, contingent on the company securing additional funding. SoundHound has not yet responded to inquiries regarding these claims.

The company went public through a special-purpose acquisition company in early 2022 and has raised over $300 million, with notable clients including Pandora, Mercedes-Benz, and Snap.

In an email, SoundHound CEO Keyvan Mohajer attributed the layoffs to challenging macroeconomic conditions. He highlighted that while high-tech companies like SoundHound were once favored by investors due to their growth potential, recent economic shifts, characterized by rising inflation and high interest rates, have diminished that appeal. Mohajer indicated that investors were concerned about the company's reluctance to part with its employees.

The trend of mass layoffs is prevalent in the tech industry, with companies like Meta and Amazon also making significant cuts to their workforces in response to economic pressures.

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